2002 A4 1.8T "SLUDGE" - warranty extension - help needed.

Hello,
New to the group and have read some posts on the sludge issues. I know this message is long but I want to provide all the relevant information.
I just purchased a used 2002 A4 1.8T Quattro with about 98,000 kilometers on it. I have had the car for about 2 weeks. I purchased the car from a used car dealer who provided the certification and pre-delivery maintenance (a synthetic oil change). I have put about 300 kilometers on the car.
While driving on the highway, the car seemed to lose a considerable amount of power and then just before reaching my destination, the engine light came on. The information console indicated that I should check the oil pressure. I phoned a local Audi service center. The service manager prompted me to add a litre of synthetic oil and get to a service center ASAP. I added Mobil 5W30 synthetic and started to make my way to the nearest dealer. About 2 kilometers away from the service center, the light came on, the engine dropped power and a lot of noise was coming from the engine.
I made it to the dealer. They informed me that the engine was "sludged" and that the engine would need to be replaced. I also know that Audi extended the warranty period due to this issue up to eight years provided documentation of regular maintenance. As the car was purchased used, I do not have original receipts for maintenance. Fortunately, the service manager at my local dealership was able to pull the service records for the car from the previous Audi dealership and certify these in the maintenance book for the car. The car was maintained regularly by the previous owner at the Audi dealer though some of the service intervals slipped those required by the manufacturer (by between 500-2000KMs).
The service manager informed me yesterday that Audi will not get involved. Audi is claiming this service intercal "slippage" is the reason they will not honour the warranty.
I have called Audi customer service as well as the used car dealer from where I purchased the car. I am awaiting feedback from both.
To me, while I am not a mechanic, it seems unrealistic that slippage of no more than 2000KMs in servicing could cause this problem. I have no basis for this opinion but would be interested in hearing the opionions of others who are knowledgable on these things.
I am looking to understand if others have faced a similar issue and what the outcome was for you. Is there hope or am I screwed?
Thanks in advance
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Just thought I would let the group know that Audi is standing behind their warranty.
When I informed the dealership from whom I purchased the vehicle about the situation, the owner went crazy. Apparently a number of calls took place with the wholesaler as well as VW/Audi and the vehicle purchase (through the wholesaler) brought the responsibility for the car back to the manufacturer (the local VW/Audi country organization).
Audi will be replacing all of the affected parts on warranty and providing written documentation of warranty coverage for the remaining 4 years of the extended warranty period - provided regular service/maintenance occurs over this period of time.
Chalk one up for the "little guy".
Can't wait to get back behind the wheel! I
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