There must be an air leak somewhere getting into the oil and I have yet to locate it.

Update from Apr 28, 2016: wow this site sucks. well im obviously having trouble with whats in the pics. maybe an air leak? maybe a bad drain plug? air was gettin in somehow as i change the oil often. the car is still mine. i took these pics a year and a half ago. i check everything on it often. i took it apart to scrape out the valve cover and oil pan and put new gaskets and put new drain plug on it. no improvement has been made since then with the sludge situation no better no worse. so when an idiot asks how you gonna find an air leak with the valve cover off? i know this site sucks. how do you fix sludge? well ya dont. you can try. some say run it with transmission fluid instead of oil(junkyard trick) i dont wana do that. some say run a cleanner longer than sugested on the bottle. i dont wanna do that. so for me i wont risk it will you? for me theres no good way of fixin it. im not trying to i did what i could. im just letin you know.