Alright yours doesn't look as crusty as mine was.
First thing, if you just bought it, take it back. That's about a dead engine.
Here is the problem, if you have chunks of sludge, anything you use to disolve sludge might break it away. Then that chunk can clog up oil pickup, oil pump, and bunch of good stuff.
I personally used 1qt of ATF and 2.8/3 qt of regular oil, that helped clean it up a bit. Thanks to Miko for that suggestion.
I have used Auto-RX, but it did not do too well in my motor. Mainly because my seals were leaky, thus it would leak out before doing any good. Thus I wasted a good $50 om Auto-RX.
You have to be careful with Amsoil. For two reasons, expect your seals to be bad and starting to leak. If Amsoil is too thin, it will leak out, just like synthetic did in my sludge monster. Another thing is, if you can't mix Amsoil with regular oil, then you may have a problem with foaming, etc. Since you have plenty of sludge that's made from regular oil.
Like I said return it if you can, otherwise expect a motor that will always have problems. Taking the motor apart and soaking it in diesel can help.
You can also try doing diesel flushes. Basically fill the car with 4qt of diesel, and run the motor for no longer then 10 minutes. Flush it out, maybe do it once every oil change. Problem with diesel though, you might eat your seals away, which need replacing anyway.
With any flushes, you will need to drop the oil pan, and remove oil pick up filter and clean it. Otherwise it will block the net, and oil PSI will drop.
Start changing the oil often, I did around 1k intervals, thus I used the cheapest oil possible. Even with that my car still pulled 125whp with intake cam and pop charger haha.
Be ready to replace the following parts:
- Timing Chain Tensioner, my motor killed 2 of them. Sludge gets into the oil holes, thus they either stay opened or closed all the time
- Oil pressure sensor is a goner most likely, luckily they are like $10
- Expect your front main and rear main seals to be gone
- PCV valve is probably sludged open or shut
- Replace oil squierters, they are a pain to clean and even then mine still got clogged. Remember how I said about chunks of sludge floating around?
Marvel's Mystery oil increased my oil consumption majorly, stay away.
Expect your injectors to be gone, mine were covered in sludge, my cylinders were leaking through piston rings and causing a lot of blow by, thus constant oil build up through PCV and valve cover breather.
If you want pictures, I can post them up, but like I said, if you can get another engine!