I really don't think the stupid trick the dealer did had anything to do
with this, if it had damaged the engine you would have found out a long
time ago.

You might try a heavier oil.

The classic old time test to see if your really burning oil is get on a
straight stretch of open road with little traffic on it.  Get up to
about 50 mph or so, then in third gear let the engine slow the car down
(the engine will build up a very high vacuum doing this).  Then step on
the gas pushing the pedal to the floor.  If the engine is really worn
you should see blue smoke.

Heavier oil would help, if you are running a 10W40 you could try 20W50,
or add something like STP oil treatment.  (in that little engine I'd try
half a bottle).

What is the car worth to you?  Is it otherwise in good shape?  Do you
like the car and can you see yourself driving it for years yet?

If it is you might consider having the engine replaced, but I WOULDN'T
have it done by the dealer!  (They aren't called "stealerships" for
nothing!).

I had the engine replaced in my Jeep at about twice as many miles as you
have and haven't regretted it.

Jeff DeWitt

OK, I know you can't diagnose this online for me, but maybe someone
can give me a better idea than my local Toyota dealer.  I have a 1999
five speed Corolla (~140,000) that seems to run reasonably well, but
goes through a couple quarts of oil every few thousand miles (Mobil
One no less; car has good taste).  There doesn't seem to be smoke on
start-up nor when driving normally, but when I'm in neutral or reverse
and hit the accelerator, I smell stinky Mobil One smoke.  I don't know
if this has anything to do with the problem, but a few months ago, I
let the car sit for about ten days, then started it up.  The engine
made terrible banging sound for a bit, then ran fine, and I've never
heard those horrible noises since.  The dealer is talking big bucks to
fix the car; rings, stem seals, etc. without any tests at this point.
Several years ago, the engine was overfilled with oil...it's only 3.75
quarts or so, and the dealer tried to stuff in five quarts.  If it is
a couple of thousand to fix, how long can I run it before it gives out
on me (assuming I keep feeding it Mobile One).