Hello guys, I will answer your questions as best as I can. Keep in mind though the following:
1.I am not a Toyota engineer or an expert, I am just a guy with 16+ years experience with one car: Toyota.
2. I only know what my experience has taught ME and what I have personally seen. I have "seen" and been around an estimated 40,000 different Toyota's that have been repaired or serviced. I have personally either serviced or handled the maintenance of hundreds of 1997-2001 Toyota's that fell into the catagory of the "sludge" campaign. There is an incredible amount of information about this.
Sooooo, here is my experience. GET READY!!!!!
I have never, ever, ever, ever, ever, ever seen a Toyota engine sludge with documented 5,000 mile OCI's with good either dino or sythetic. EVER. Period. What you say? I am sorry to tell you this, but it is true. In every single sludge case, which I am required to personally inspect, the owner falls into these catagories:
1. New owner of a used car. Bought the car already sludged up.
2. The owner flat out admits OCI's way past due at one or more times.
3. The owner follows Toyota's "Normal" maintenance schedual that started in 1997 that said to do 7500 OCI's. Not the customers fault, stupid on Toyota's. The customer would in most cases see 7500 as a starting point and really do OCI's at 8500+. [censored], I saw a 30,000 mile Sienna 3.0 V6 with the original oil filter on it. ENGINE TOAST.
4. Boyfriend, husband, cousin, neighbor, priest changes the oil every 5,000 miles but has no reciepts or proof. What do you know???
It's amazing though. We must have a special oil here, because at 5,000 mile OCI's, my customers engines will not sludge. Hmmm. And it's 5w30 Mobil Driveclean, dino oil.
If you have a clean Toyota engine, change the oil at 5,000 miles, and all will be well. Go to 7,500+ on dino? Well, you might get sludge. FYI, Toyota did nothing to update the engine for us to repair. We replaced the sludge damaged parts, and reminded them of the importance of 5,000 mile OCI's. Nothing else.
I hope this answers your questions, let the flaming begin.
PS: The 3.4 is good. The early ones (1996-1998) did have some headgasket failures though. They blew and leaked externally within the first couple of years.