My 2001 ZX2 also developed a squeal...made my car sound like a POS. It sounded like the noise was coming from the drive belt, so I had a shop replace the belt and auto-tensioner...and it didn't fix the sound. I was on the verge of having the timing belt replaced, but thankfully I researched with google. I found a site (link is below) that suggested the squealing noise was caused by a clogged up crankcase breather filter. In order to test it, simply start your car and wait for the squealing to start....then unscrew your oil cap with the engine running. If the squealing stops, replace the oil cap and turn your car off...then remove the crankcase breather filter and restart it. Any squealing? If not, call your local Ford parts dealer. The part number for my 2001 ZX2 crankcase breather filter is F8KE-6A768-AC. A hose leads from the main air filter housing to the breather filter...and a small hose leads from the bottom of the breather filter to the crankcase cover. The part cost me $14.07. The guy there did have to cross reference the part number. On my receipt, it lists it as part number F8CZ*6A768*AB...and there is a FA1661 by that.
Ford Escort ZX2 - CarSpace Automotive Forums
Of course, if the squealing continues once you unscrew your oil cap, then you're looking at a problem with your drive belt or timing belt or a pulley. Good luck!