It almost sounds like this would be the infamous sludge issue, but that isn't for high oil consumption. Sludge is when coked oil clogs up the passages and causes oil starvation to the heads and then engine failure.
This sounds different, but it sounds like Toyota is diagnosing and billing it as a sludge replacement. Who knows....
Hope it all works out though! 
__________________
Steve
2007 RAV4 Sport V6 4WD, Barcelona Red (picked up 9/13/07!)
2002 Highlander Limited V6 AWD, Bluestone (wife's ride, 72k miles)
1999 Nissan Maxima SE 5SPD, Super Dirty Black (161k, For Sale)
2001 Honda Accord EX-L V6 4DR, Satin Silver Metallica (30k, RIP 1/4/02)
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