2003 1.8t Problems!!!

[cody_stl]

Ok,
my sisters friend has a '03 1.8T 5 speed. The car has only 66000 miles and is never driven hard or harrassed. All of a sudden it has a seriously loud top engine knocking,the oil light is on,and a check engine light. I scanned the check engine light and the code was 0011 which by my book interprets as something like " A Camshaft advance Adjustment" or sumpthin. The car is knocking like a son of a *$#!@ so i take it to my work. Run a little tranny fluid with some detergant based engine flush chemical for bout ten minutes to try and free up what i am pretty sure is a seized valve cause you get a lot of blowby when the oil cap is off. Then changed the oil and filter cause it was due. I stepped up the weight to 10W40 Maxlife and used a quart of lucas oil stabalizer in a desperate attempt to fix this. So it doesnt work, i am driving home and 5 blocks from my house the thing starts smoking like a chimney,so i bring her to a coast in front of my house and kill the engine running every stop sign i could. And there it sits! i Usually use 5w30 Synthetic Blend and i am very regular with the intervals but there still seems to be an awful lot of sludge in the top of the engine than there should be. Either way,i am a novice mechanic so if there is something i can do please help me out,otherwise in bout 1 or 2 days he is gonna get it towed to the dealership where they will unmercefully screw him out of a lot of money.
Thanks Guys

[veedubmechanic]

Unless the oil was changed every 3-5k miles MAX there will be oil sludge. Also turbochargers are run off oil and if there is alot of HW driving at high speeds it can cook the oil if the level is not checked regularly.

[cody_stl]

that sucks man. It's a nice car too. He had it towed to the dealer,prolly gonna cost him a leg and a first born child ta get it fixed. something serious was wrong cause a car that is normally quite fast had to be downshifted to maintain 55mph. oh well,i'll keep ya posted
thanks