A cautionary tale for all.
My 406 estate (2.1 TD) ground to a halt 3 weeks ago. My first assumption
was the cam belt. I was cursing for not having changed it sooner (38K
since last change).  
After recovery to my local garage and describing the symptoms it then took
them 10 days to decide that the engine would have to come out to remove the
cylinder head to check for further damage.
Due to the local garage mechanic going on holiday the job was goimng to
take about 3 weeks.
As I was due to go on holiday aswell I removed the car to my local Peugeot
dealer who claimed they could complete the task in 3 days.
On investigation and removal of said engine the cam belt was actually
still in one piece. The problem was the camshaft pulley had broken into 3
pieces!
This had resulted in the pistons 'kissing' all 12 valves and 2 rockers had
broken. Debris from the pulley had also damaged the fuel injection pump
pulley and of course the cambelt.
The dealers answer was to replace the damaged parts; all valves, a
complete set of rockers, the camshaft would be suspect after the shock it
may have received aswell as the cambox.
I eventually agreed minimum parts to get the motor running so skipped the
camshaft and cam box.
The repair bill.......£2500 !!!!
Peugoet have insisted that 'these things happen' after an e-mail to the
head office suggested there may have been a manufacturing weakness.
The vehicle is 7 years old and has 103K on the clock, average mileage one
would assume.
If any of you have the opportunity to check this pulley ie when changing a
cambelt; check for hairline cracks of the spokes or overall integrity of
the casting by any means you can.
It could save you a whole heap of money!!!