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How many miles on the car?
Did the CEL just come on, or was it on when you bought the car?
What is the maintenance history of the car?
Did the mechanic check timing?
Mechanic should have pulled the OCI filter and checked to see if that was clogged. Right above that is the OCV (oil control valve) that controls oil pressure to the VVTi actuator - if that valve is clogged or excessively gummed up, it will throw that code. Could also be an issue with the actuator itself (the big "drum" on the end of the cam) - though less likely, can be filled with gunk and sludge, or the locking pin inside worn completely through the backing plate. Another strong possibility is the chain jumped a tooth - as a P1346 is more often than not, a mechanical related problem. Could be as extensive as replacing the timing chain, tensioner, chain guides, even more.
Definitely want to take this to a Toyota VVTi/VVTLi expert. Might have to go to a Toyota dealership or atleast a shop that caters to Toyotas. You can diagnose the actuator with the Toyota handheld scanner, cycling it, to see if what component is causing the problems.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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