Engine Oil Leaking problems of the 1999 Toyota Camry

We went to the dealer today, armed with an amazing array of internet information. We were initially sent to the main receptionist who when asked who's handling the sludge problems? at first didn't seem to understand the meaning of the word, then when my fiance pulled out a whole packet of information and put it in front of her and said this problem, which I'm sure you're aware of she then aid, you took me off guard and then stopped the gsm or sm and asked him to talk to us. When in his office, we said, we bought a car from you and have sludge and the car has sat a month, he referred us to the repair department. We walked though the hall and over to repair and spoke with the manager of that department. He asked for the VIN and the mileage, after we said we have a bad sludge problem. He pulled the vehicle up in the computer then asked if anyone had removed the intake to see if it was sludge. We answered that of course we had taken it to two different mechanics, first because we thought it was an oil leak, burning and causing all the smoke. Both mechanics knew immediately that it was sludge, although the one was nice enough to run diagnostics to prove there was no leak. We were told the car could not be driven. After telling the manager that two mechanics had seen it, he asked if it could be driven to the dealership. We told him, since it is shuddering and smoking like a freight train, both mechanics advised that the whole engine would seize up, and we would not drive it. He then gave us a number to a towing company for the dealership that would tow at no cost to us to the dealership and agreed to look at the car tomorrow. When I asked what it would cost me, he said nothing, if it is sludge. We'll see. If this man is as honest as he seems, he's not only rare, but amazing. Of course, he could call in a day or two and say it was my fault and want oil change receipts. Unfortunatlly for the dealership, I have them.