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I've had a few 1999-2005 era VW and Audis with the 1.8T and engine sludge issues. Bought them broken. I will no longer fix them, they're simply too expensive and complicated given their current value (or lack thereof).
Back in 2001-2002 I used to travel to Florida every month for their Volkswagen/Audi Credit sales to buy factory and off-lease cars. Many, many of the 1.8Ts had "SLUDGE" or "MOTOR NOISE" written in bold letters on their windshields so they did not come back in arbitration. They knew of the issues a loooooong time ago.
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I love you guys outside this forum 
-Eric
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