Starter blown
 

Ok I kinda busted my 87 turbo last night. A friend but in the wrong key and started the car. Instantly there was a bad clanking sound. When I got home the key was stuck in the idle was high and the turbo was glowing red and it won't start now. The key is still stuck in but my question is could the clanking have been caused by the starter being held in the wrong position by the key and would it be blown or rendered useless now so I'd have to replace it and would replacing it fix it all up, aside from the glowing turbo.

Yes, you can damage a starter by cranking it too long as well as rip the teeth off of it or the flywheel.