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Either a vacuum leak or a faulty MAF sensor. Car doesn't know how much air to add so it over compensates. Mine had a vacuum leak on the upper inlet means revs jumped about at idle but drove no problem at all. If you got access to RSTuner or diagnostic machine then that's a good place to start...
I have heard that apparently flashing EML is 95% of the time is injector. But as I said changed plugs and leads solved it for me.
I not sure on what the time scale would be to do major damage. I had to drive mine 20 miles with a flashing EML and it was ok. Just would drive it if you can help it.
Flashing engine management light usually means whatever is happening is causing damage to the CAT. Had a similar issue not so long ago, changed leads and plugs what fixed the problem.
Serious question: How many teeth can you be out on timing before the car won't even run ? Surely if it out too much you would smash valves and if just a little out it would run like a dog ?