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The host portion of the destination subnet of the ip route command must be all "0" in binary or you will get the "inconsistent address and mask" error. Try "ip route 160.0.0.0 255.255.255.252 serial 0/0"
Change the loopback on your Router2 to 160.0.0.5 255.255.255.252, then add a static rotue on R1 "ip route 160.0.0.4 255.255.255.252 serial 0/0" and on R2 "ip route 160.1.0.0 255.255.255.252 serial 0/0" that should work.
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