How is your oil level and how often do you change it? Most likely it is the either the oil control valve (OCV) filter or the camshaft timing gear. Do you happen to have a modified intake at all. Just wondering, might want to clean your MAF first. I suggest cleaning the MAF followed by the OCV.
If you have skinny fingers and some patience, you do not have to remove the alternator, but it is a very tight fit to get to the OCV filter.
http://www.corolland.com/forums/inde...tenance-items/
If that doesnt work, timing gear will have to be replaced. Most likely that OCV filter will clear it up.
Maybe someone on here has access to TSB 00507 and can share it with you as it deals with this code.