2009 GTI engine is shot after 70k miles. Little help?

[PeteLawton]

2009 GTI MkV TSI (CBFA), DSG, APR Stage 1 (got it at ~20K miles), original owner.

A couple months ago I started noticing an occasional jolt during acceleration through 4th and 5th - only when the engine was still not completely up to temp. Kinda felt like a misfire, but the CEL was already on from the common intake manifold everyone seems to be having, so I don't know if a code was being thrown. I was approaching my 70k mile mark, so I made a note to have the manifold replaced and ignition system checked out at my next big service. Laid off the hard driving from there, and the misfire actually seemed to go away. Bad gas?

Fast forward couple days ago, I was pulling out of my driveway when the engine started a terrible knocking and shaking - CEL now blinking. Had it towed to my local German mechanic (dude has an awesome accent) and they reported that the ground electrode from the spark plug in cylinder 1 was bent, completely closing the gap, causing the misfire. The spark plug looks like someone beat it with a hammer, and the valve seating is torn up. Apparently there's a nice little chunk of metal or rock or something in there causing some serious hell. The engine is now in some kind of lockout mode (?) sitting at the shop.

My options from the mechanic were:
1. Complete engine block and turbo tear-down to determine the extent of the damage + definitely machining the engine block back to normal + replacing the faulty intake manifold (less parts, more labor)
2. Find a used replacement engine assembly (less labor, more parts)

Called the dealership and explained the situation. They said it wasn't anything they'd ever heard of, but, while the car is 10k past warranty, occasionally VW has been known to help with extreme cases like mine. So third option:
3. Get a second look from VW and cross my fingers that they'll give me a shiny new Golf R or something.

So, a few questions:
What option sounds best to you guys?
Is VW just toying with me to get my business?
If I bring it to VW and set my ECU to stock can they still see that it's chipped?
In your opinion, if I go with the rebuild or replace, which do you think will give me more problems down the line?
Anyone want a fixer-upper?

Sorry for the long post and thanks for any advice.

[SnoopisTDI]

You can't really set the ECU to stock, it's just "stock-like." That said, I don't know if they would notice or not.

I don't know what to say about the rest of it, except sorry to hear about it and good luck. It'll be interesting to hear what is really going on in there.

[PeeLo801]

Sorry to hear about your situation.

It has been confirmed that VW can determine if you have your ECU tuned now. I read it on golfmk6.com. It might also be worth contacting APR to get their opinion on it if it could be in any way related to the tune. Regardless, I wish you the best of luck with this.

[kaban]

From my understanding, the ECU can be returned to completely stock mode by an authorized dealer. That being said, because you cant drive the car, the dealer would have to come to you. Not likely. I'd still contact VW and see what they say, no harm in trying. A little advice for dealing with VW, if you don't get your way, strongly insist.

[CC'ed]

Sounds like it "dropped" an intake or exhaust valve. Probably the exhaust valve, as they are under much more thermal stress than the intake valves. Or it sucked something in, thru the intake manifold : Maybe an intake "flap" broke off and got sucked into the cylinder. Need to pull the head off to inspect the damage. If the piston top is trashed, or the cylinder walls are damaged, I would put a low mile engine in from a salvage yard, otherwise you are rebuilding the original engine with a new block and head anyway....

[JHEIII]

If you can find a good deal on a lower mileage, TSI motor - buy it. It'll save you a ton of time, money, and energy. I would also contact VW ASAP and determine what your options are.

[onevrsix]

You're at a tough cross road. I don't know how mechanically inclined you are but this is what I would do. I would start by pulling the intake manifold and checking the intake valves, while off I'd shine them up, Pull the plugs and vacuum out the cylinders as best as possible in case there was a piece of dirt/rock/plastic/ metal that damaged the plug. I'd reassemble with some new plugs and see if I could fire it up. all of the above can be accomplished over a weekend with patients and a good DIY (which there is on here thanks to steel-curtain).

Worst case scenario, it doesn't fire and you're out the cost of a manifold ($150 from 1stvwparts.com) Best case scenario, it does fire up and runs; at this point follow oil and coolant consumption. If after you change out the manifold plugs and do the cleaning you're still misfiring in cylinder 1 you know you have an issue bigger than you and I'd weigh your options. Good luck