Update on my situation that may help:

I replaced the PCV valve which is stupid easy - 4 screws and two hoses to unhook. Bought mine on Amazon for $30.00. When I took it off I noticed there was a small oil leak in the vicinity. I replaced the #2 spark plug ($5.00 @ Autozone) which was only about 6 months old, but the shop put in a double platinum plug and the standard is iridium. I'm not sure how much difference that made, though. Anyhow, it was fouled up and needed replaced. I also replaced the #2 ignition coil ($25.00 @ Autozone) since my #4 had recently failed and I hear they like to fail around the same time. Since I had a bunch of stuff apart I also replaced my Cam Follower ($60.00ish @ ECS). This is a CRUCIAL replacement on the 2.0T. I hadn't replaced mine yet and had driven approximately 15K since I bought the car so I decided to change it. It was completely OBLITERATED. Maybe 50% of the total metal left. It was in awful shape. I will probably have to replace my high pressure fuel pump and intake cam shortly.

So after doing all this and putting it all back together I've noticed a considerable increase in throttle response and overall quickness. No stumbling and a smooth idle after it warms up for a minute or two. The CEL is still on, but I suspect it will go away soon. If not, I will disconnect the battery for a few minutes and reconnect it. The moral of this story is I think the PCV valve had a lot to do with my problem and has a lot to do with yours. You can buy a genuine VW/Audi part for $70ish and it only takes a few minutes to change. Also, check your cam follower. It doesn't take very long and it could save you a lot more money in a short time. Let me know what you find!

 

Sorry for the long delay. It took a while for the parts to get here and then it was too miserable outside to work. I got the fuel injector in but unfortunately I accidentally snapped the connection for the hose to the coolant overflow (a pretty pricey mistake). Anyway, here's some pictures of the old fuel injector. You can see a large build up on the fuel injector, the others had a little oil on them but nothing like this one. This makes me feel better about my theory that it was the issue. I won't be able to test it until my upper radiator hose comes in but I'll keep you posted.

 

I already have the follower ready to go in. Fortunately mine is in pretty good shape. It has some wear so I'll be replacing it but I'm glad it wasn't too bad. I'm spending enough on this repair

 

So I still have a misfire on cylinder 3. I'm kind of at a loss. The PCV seems fine, there was a small amount of oil in the intercooler tube but that's normal. Ignition coil and plug swapped, and a new injector. What's next?

 

Check the compression on all of the cylinders and see if #3 is low. If it is, you could have some carbon build up on the valves or the rings that may be causing a low compression situation which will lead to a misfire. If the misfire is not very noticeable, run a can of Sea Foam through the fuel system and drive it. The Sea Foam may clear those carbon deposits and improve the compression enough to cure the misfire condition.

 

The misfire is definitely noticeable. Still better than it was originally, but not well enough for me to even feel comfortable driving more than a mile or so. I'm picking up a compression check kit tonight and I'll post the results. I'm also getting my hands on a VAG-COM next week and maybe it'll shed some new light as well.

 

Ran a compression test I rented from autozone. Cylinder 3 has 0 compression. The unit seemed pretty cheap but I was getting 90 on all the others.. which is still low. I guess leak down is my next step?

 

0 compression is bad.. Could be so much carbon (from the oil going into the intake) on a valve that it's being held open slightly. This can lead to a burnt valve. I hate to say it but you may have to pull the head and check those valves.

 

Any chance I could check this by removing the valve cover? What type of investment am I looking at? I've done a head replacement on a Toyota before but not an audi. The timing chain was a huge pain for the Toyota, will the belt be the same for the audi?

 

The four cylinder shouldn't be too bad. If you can do a Toyota with a chain, a rubber band shouldn't be a problem. If you can do the work yourself, you're just looking at parts. If its a burnt valve and it hasn't damaged the valve seat in the head, you should be able to get away with replacing the valve/s that may be burnt. I'd go ahead and get complete head gasket set and replace the valve seals and cam tensioner pads. Check Blauparts.com for a headgasket set. Regardless, you're almost 100% going to have to pull that head and put the old eyeballs on the inside to determine the no compression issue.