Well this is hardly an update, but I talked to the shop owner that I know (bear in mind he's more of an owner/ not tech savvy whatsoever) and he relayed the message that the problem was with an intake manifold valve and he gave me a part number of 11 61 753 4237.

I'm going to go through with the engine swap and I guess I have to replace the cat. converter(s) because of the amount of oil that passed through - he said that I would have a lot of smoke if I don't replace them.

So he's looking for an engine an I guess that will be the end of it for now.

My advice to anyone that gets an SES light would be to check it immediately. It could be something small like a loose gas cap, but it also might be the difference between fixing a small problem and replacing your engine.

Any thoughts about keeping the car after its fixed?
They told me that it should be fine with a new engine but what are your thoughts? Ideally I would love another year out of it, by then I would be done with grad school and hopefully have a decent job.