04 corolla 1.8

Question

P0016 can sludge be blocking the oil passage to the vvt new timing chain
Marks are dead on new crank sensor what else could it be

Answer 1

For P0016  VVT Monitor system 

If you suspect that high amount of sludge is a problem remove a quart or half quart  of motor oil and add a quart of transmission fluid (not synthetic ) or a half quart as a substitute, This method was used when there where carburetor engine. and this is still a valid practice. Transmission fluid is a 5w 30 weight. More than likely if this was a ECM problem you would set a P0010.