Looks to me like you need to do a CCV update. Have these components ever been changed that you know of? There is an updated kit from BMW for cold weather climates which is better insulated to prevent the CCV condensation issues that cause blockage in the CCV system. Common points are the CCV valve and the dipstick tube. The tube is internally split into two passages, one for the dipstick and one for the CCV crankcase breather. This commonly gets plugged up. The valve itself also tends to gum up and stop working which can cause oil burn.
Its a pretty large job to replace these components but is definately something a DIY'er can do. Get a service manual and buy all new parts from your dealer if you have one close. Use your BMW CCA card for a discount (most dealers give 20% off).
This will ensure the CCV system is working properly. This will not remove any existing sludge from under your valve cover. As long as you've addressed the issue that sludge you see should not further accumulate and wont cause problems.
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2001 330i Black Saphire Metallic - sold 
2005 X5 4.8is Le Mans Blau - Beast!
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