hey thanks all for your comments.... I talked to this other mechanic and he said what you guys said about the headbolt having to do nothing with the timing belt change.
So he thinks that something like this happen:
1.) timing belt change 2.) they screwed up something to cause engine to knock 3.) took it back they found out it was their fault 4.) tried to fix it, had to remove valve covers, broke bolt off while messing with it. 5.) they re-torqued all the bolts, which to me indicates something cause those bolts to come loose, and told me to go on my merry way.
According to mechanic, he told me that I should drive my car since it is dangerous to have my engine in that condition.... i am now car pooling .
Anyway, I already filed a complain to California's Bureau of Automotive Repair because of this fiasco. They just called me today and told me to fax them all of the paperwork and evidence. No one I've spoke to that knows more about cars than me said they ever heard of a headbolt breaking off by itself on a Honda engine in their life.
I will keep you guys posted thru this so that if this kind of thing happens to others they might be able find some proper way to make these dealers own up to their mistakes.
.