Lexus Repair: Lexus Engine Problem (Oil Pump)?, engine oil pressure, power steering fluid

Question
Two weeks ago we brought our 1999 RX 300 to our local service center (i.e. mechanic) to fix a noise coming from the engine.  At days end, we were told that it was something to do with the steering pump and that they had drained and replaced the power steering fluid, put in an additive, etc. which cost us $90 and this should quite the noise else they would need to replace the p/s pump ($450).  After picking up the car from the service center, my wife was no more than a block or two away when the car stalled and the red warning light for the 'low oil engine oil pressure' came on.  (We did not have this problem (warning light) before we brought the car into the shop).  She was able to restart the car and drive the remaining two blocks to our home.  

When I checked the oil, the reading on the dipstick was very low. I added two quarts of oil but the 'red' light did not go out.  We brought it back the service center and now they are telling us that there is no oil pressure and that we need a new engine?  They also stated that the car was a few hundred miles over its oil change (3800) and that is what caused the problem?  

I had the car towed to another service center for a second opinion.  They checked the car and said that there seemed to be ‘sludge' in the motor.

In speaking to a few people they all have stated this is not normal and was Not caused because the oil change was a little over @3800 miles.  

There was a previous problem with the car and the original owner.  After we had the car for about two months, we brought it to the Lexus dealer to have the heated seat repaired (car was on warranty of 4 yrs/50,000).  I was asked by one of the service reps if I wanted to know the history of the car (the original owner had purchased the car there and had it serviced there.  We bought the car off a used car dealership in town).  We were told that the original owner never changed the oil (at least that is what Lexus stated - I have the printout of the service records from Lexus)and the car need engine repair work (10 hours).

What could have caused this problem?  What can we do?  Where should be bring the car to be serviced?  The car only has 68,000 miles (we purchased the car with 39,000 miles) and we know the engine was rebuilt.  Is there any warrantly on this?

Any help would be greatly appreciated.
Thank you.


Answer
Hello, Well you are out of warranty for sure and going over a few hundred miles did not cause the problem. There is not much you can do at this point. A suggestion from this point on would be to try and use only a qualified factory trained Lexus shop or the dealer. Have you been changing the oil every 3k miles?