Correct JTK, the fuel is well under their allowable limit and they are basing it off of the sludge. They know the oil in now is correct and 1200 miles fresh, but said "maybe someone before changed with the wrong oil" but I know that's not the case, I made sure what was put in was the correct weight at all 4 changes and records/receipts show. As for engine wear, not that I've ever noticed. It runs great except for the startup smoke....it did have a misfire because one of the plugs fouled which was resolved about a month ago.
AC1DD, I will be going there Monday, they said they wouldn't get to it till tuesday/wed so before I call I'm taking a ride up to see for myself.