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Re: Knocking and oil residue



The knocking sounds like lifters to me.  These go at about 100k miles in my
experience.  You might try synthetic oil, or some engine cleaning stuff, but
the only thing that stopped it for me was replacement.  They cost about
$10-$20 each depending upon where you find them, oh, you need ten of them of
course.  This is a good time to replace the timing belt, water pump and idler
pulley.  So, about $250 in parts for everything and three hours labor if you
have the tools.

As to the oil in the filter, don't worry about it.  Audis and VWs normally
have a bit of oil in the filter from the PCV system.  At 120k miles the
engine is just about broken in and will last a long time with regular
maintenance.  

HTH!

Steve Eiche
'82 Not So Ur q