Toyota Repair: seized engine, 2002 toyota camry, customer support program

Question
I have a 2002 toyota camry, the engine seized at 97,000 miles. I had it towed to the dealership, told it would most likely be under the extra care warranty. They opened the engine and found sludge. I bought the car used from this dealership @ 30,000 miles and it previosly had been a rental car. They say they are not going to cover it; because the warranty does not cover sludge. i fould a program call" oil gel customer support program", but my car is 1 year too late for that program. I have provided the dealership with all maintenance history. I always changed my oil every 4-6,000 miles. This sludge can't be because of me. The dealership is refusing to cover it, and says that i should sell them back the car and get a new one or just pay for the repair. By the way it  has taken them 2 weeks to finally tell me that this is not going to be covered. I have been in a rental car all this time, which I now have to pay for. I am so lost and have no other options. What do I do?, is there any loop holes I should know about? If you have any insight i would be very greatful.

~ lost

Answer
I would recommend to you that you contact toyota customer service, there is an 800 number and the dealer can give you that number or it should be in your service manual.
Explain the situation to a customer service representative, when you call have any and all pertinent information on hand, when it was bought, what dealership, mileage, VIN#, the more information you have the better.
If they can possibly assist you they will do so.
If you have trouble getting the 800 number let me know and I will look it up.
It sounds like you have taken care of the maintenance as required so have all the receipts on hand, they may want to see them.
It seems that you have a good case to at least get some kind of assistance from the factory but of course I'm in no position to promise anything, it's strictly dealt with on an individual basis. I wish you the best of luck with this.
If after all of this the dealer is willing to buy back the car and is willing to deal to get you into another car this may be the best option, but that decision is up to you.