Damn OP, I remember reading your original thread back in the day. I gotta say, I really don't know what you were thinking going back to the same dealer. They are definitely never (ever) going to cooperate with you, due completely to your lawsuit against them. So some advice, if you decide your next car is a BMW, do not buy it or service it at that dealer.
People, the OP has done the oil changes as instructed by BMW. The problem is that the 16K one was done at an indy shop. And due to the lawsuit, they are giving him a hard time (can't say I blame them). The sludge is not due to the frequency of oil changes. Something else is going on there. But again OP, your legal predicament is what's stopping them from helping you. Sorry.
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