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I feel your pain, I have not had this issue directly but helped a couple of friends with this issue. The most common culprit for oil consumption in these engines is piston rings, they become gunked up and stick over time. The later 1zzfe engines have revised pistons and rings to remedy this issue. I have talked my friend into replacing his long block engine with an 05 or later model year. Hope this helps.
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2005 Corolla LE - Impulse Red - Auto Trans - 1ZZFE - 86,000mi
2003 Echo - Auto Trans - 96,000mi. - slow as dog-dirt - I'd rather put my money in the bank than in the tank!!!!!
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