Scott,

I purchased the Passat new. Most of its life has been highway miles. I think city driving is what is killing the 1.8t. I did 3 timing belt changes, they all ranged around 700-800 dollars.. My E300d is falling to the rust demon. I have already done some patching on the floor near battery and along under the passenger seat. The motor in the E300 is rock solid. I feel the same way about the 1.8t, its rock solid its just the addon stuff and electronics thats crap. If VW had put on a simple PCV valve that required maintenance it would have eliminated most of the Cam seal leaks and probably some of the sludging issues you speak of. I didnt switch until 140,000 miles to synthetic. I do have a PDF version of the maintenance if you would like, just PM me your email address.

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Dennis
2006 E320 CDI Black/Black Leather. Nav, HTD Seats HK stereo 32000 miles.
2000 VW Passat 1.8t 300,000 miles as of Dec 09, 2009 original owner
1997 E300d Silver 300,000 miles As of Jan 05, 2010
3rd owner SOLD