VW Passat sludge cleared with BG cleaning....???

I know this is probably very old news for most. But in a recent blog I read (here) something about a BG cleaner used to fix the sludge problem found in the 1999-2004 passats.
This is what the dealership sited as my car's problem:
Found very bad oil leaks at valve cover gasket and cam adjustor. They also checked the dipstick and there was no oil registered. could this be caused by the sludge issue?I have just spent time and money trying to figure out if I should replace the engine or sell as is. But if there is some miracle cleaner that could possibly fix it, I am willing to try that before i call it quits. I've also had the car in the dealership for the last 6 months on and off (about 4-5 times) each time they tell me soemthing new but the engine light comes right back on after 2 weeks. Did they miss the sludge problem. Could they have made it worse. No one ever mentioned this issue to me nor did they mention that I should keep all my oil change receipts! Plus I'm the second owner.
Does anyone know the procedure and actual 'BG' cleaner used for this problem? i went to the BG website but there is a long list of oils and cleaners and I'm not sure which it is. Will it even work or is my car to far gone to even try?

Your help is greatly appreciated.