This is apparently a widespread problem for 2AZ-FE engines...
Just joined. I have a 2002
Camry with a 2AZ-FE engine that sludged up unexpectedly at only 56,000 miles after being regularly serviced by the dealer here in El Monte, CA. Somehow the Toyota dealer missed obvious signs of this, such as THICK brown sludge all over the inside of the oil filler cap...
My new (independent) mechanic, in the process of replacing the engine with a reconditioned engine ($5000), discovered the cause of the problem while torquing down the first head bolt; something "didn't feel right". When he pulled it back out, it had little curls of aluminum slivers on it -- the threads in the aluminum block are too soft, and they strip easily!
Several owners have been reporting head bolt threads that stripped or resulted in loosened bolts (typically between 50k-90k miles), allowing the head to lift up just enough to allow coolant to either "leak out the back" or (in my sad case) slowly seep past the gasket into the crankcase. In my case, this built up oil sludge slowly over time, which destroyed my engine.
Needless to say, my mechanic is now heli-coiling all the block threads on the replacement engine block before bolting the head on.
One service center owner predicts that we'll start seeing a lot of these cases, and that the root cause is the placement of a large piece of insulating foam rubber between the plastic intake manifold and the engine block. This creates an uneven dispersion of heat, causing "metal fatigue" in the aluminum block, allowing the head bolts to strip. If
Toyota had made the manifold from aluminum instead of plastic, there would have been no need to insulate it, thus preventing the problem.