Well there's a few things specific to these cars...
1) Check for a leaking turbo... These cars have a borg warner k04 turbo, which is notorious for wearing out the thrust bearing, causing oil to leak past the seals... especially if the car was run at boost >stock. The symptom would be oil smoke at low idle. This could also be a sign of excess blow by caused by a lack of compression...
2) Def do a compression check... Never know what may have been done to the car before you.
3) Check the rear diff for any slop or movement, rocking etc. The stock bushings are less than sufficient.
4) Make sure the axles are good. (No excess slop or noise)
5) Also check for the Variable Valve Timing repair. (or "VVT" as it's commonly referred to on da interwebz) they just sent out a TSB not too long ago ... the actual actuator on the end of the cam goes bad and it makes our timing chain go loose.
...That's all i can think of off the top of my head. I may know of a good link for you. I'll post it up if I can find it.
Cool, does this apply to the speed3 and speed6? Other than these issues do you like your car? I just totaled my passat and I am looking for a similar car but with more performance and similar fuel mileage.
Yes it applies to most cars w/ the MZR 2.3l DISI turbo (ms3,ms6,cx-7). I would run an oil catch can to keep oil out of the intake. I personally think this is the cause of a lot of these motors' demise. (may have been mine at least)
I believe my car pulled some oil out of the crankcase and into the intake, hydraulic-ing my #4 cylinder. But, I may have had a compression issue and/or too much boost beforehand that caused this excessive blow-by...
Nevertheless I like my car a lot. I drive it 400+ miles each way to school and back. It turns a lot of heads. They are a little expensive to mod, but I like owning something you don't see every day. They don't make a ton of horsepower, but I don't think that's really what you're looking for anyway. My beater in the meantime is a 2-door and I miss the Speed's 4, light doors a lot. MS3 is what I was originally looking for, but I ended up finding this car on the site actually. Purchased in Aug. '10 from around Albany, NY.