2002 A4 1.8 Engine replacement

I have a 2002 A4 1.8T which succumbed to the oil sludge problem. I'm wondering if the bad engine is repairable at all or if I absolutely need to get a replacement? Which is a better option- rebuild old one or completely swap out with a used engine? What parts absolutely need to be replaced with a repair or replacement? So far, repairing the old one seems to be about $1000 less than swapping with a used one (at least from the shop the claims they can repair the old one). Any suggestions will be greatly appreciated!!

if you have all your service records the dealer will fix or replace the motor at no charge. if the cam bearings are damaged then the motor needs replacing. if they are not damaged then the motor can be repaired. a repair consists of oil pump/oil pump screen replacement, all egr/vacuum hose replacement, and a de-sludge engine treatment.