I have to say, I'm also very disappointed in the design flaw of the Gen1 engines. There is no good excuse for this engine to be put in a mid-engine car whose mission in life is to corner fast. Why else would we put up with a car with no back seat, low ground clearance, difficult engine access etc?
That said, it is no secret that these engine fail if you don't put the engine protection goodies on them. Rob, I would not just get a bigger sump. You also need an improved VOS, a $2500 plus installation TTP Oilsafe kit and/or an Accusump system. You should also have a power steering cooler mounted in the front of the car and plumbed to your steering rack in front to keep the temps down back at the pump in the engine compartment. While your at it, an LN Engineering Intermediate Shaft upgrade would be a good idea.
The first thing I did before buying my CaymanS was read the "Complaints and Problems" section of this forum and the articles on curing those problems. No amount of wishful thinking is going to solve them. Trying to "drive around" the problems won't work either long term.
Some guys have decided to just put their cars back to stock and sell them when the engine repairs are completed and not do these improvements. That's one way to go with this.
Another is to think about maybe a 3.8 engine or doing a full TPC turbo treatment on the car or selling it as is to a builder.
Now, for all the complaining about Porsche, they seemed to have remedied every single engine problem with the Gen 2 design. The engine now has 5 pumps instead of one. There is an improved power steering design, an improved VOS design and the trouble prone intermediate shaft has been eliminated on the new engine. I've been at DEs in the Midwest where a Porsche driver takes a bone-stock CS and drives all day long, stopping only for bathroom breaks and the like in all kinds of weather. No problems at all. They are also running a group of cars in all-day autocross and track conditions with lots of different drivers at the Porsche Experience events. The autocross thing, especially, seems like it would be hard on these cars.
It seems to me that they are doing the typical German car denial thing while simultaneously developing the cars to avoid future problems. This is typical of BMW behavior as well.
Although I think the Gen 1 situation is really abysmal for guys who buy them with the intent of tracking them now and then, it's not like no one knew about this problem. This situation existed for the 996 cars and our Gen 1 engines are 996 blocks turned around backwards from the way they were originally designed. That means the oil pickup is in the opposite corner from optimal.
The lesson is, either drive these cars as everyday cars and don't do DEs OR AUTOCROSS, or upgrade them. While I feel terrible for both of you guys' situations, the warnings were out there for you to read and heed.
Every car has foibles. I think this particular group of foibles on this particular car is inexcusable for a company like Porsche. Apparently they do too because they have made some pretty huge efforts to fix them.