2006 XC90 2.5T AWD - engine clatter, no power, blue smoke- HELP!

[geekmaster48]

Hello All- I’m working on a 2006 XC90 2.5T AWD. While I was driving it all of sudden it lost power, the engine started making a pretty loud clatter from the top end and it started pushing out substantial blue smoke. Definitely smells like burning oil. Here's the gist- I’ll try to make it quick, I'm new to the Volvo world. My girlfriend bought the XC90 a couple years ago from a private owner as her daily driver and we have no idea what kind of maintenance schedule they had. I’m guessing none. I've fixed several problems over the past couple years (I'm a pretty good shade tree mechanic). One day the dreaded "NO OIL PRESSURE STOP IMMEDIATELY" message came up. After some online research and the "glove" test I came to the conclusion the previous owner didn't change the oil regularly and the PCV system must be severely clogged, and I was right- it was! So I fixed that by replacing all the PCV parts and cleaning all the carbon I could reach and did an oil change using a quality filter and Pennzoil euro 0W-40. (What a pain in the A**). Then I took it for a test drive and the message came back. So I had replaced the oil pressure sensor when I did the PCV but I checked to make sure it hadn’t become clogged again. I also cleaned the oil pick-up tube (again) and replaced the oil pan O rings (again). It didn't help. Meanwhile all this time the engine purrs like a kitten. But we kept it parked till I could figure this out. Fast forward to a couple days ago. My friend has a shop with a $3000 dollar Bi-directional code reading machine that is about 30 min away up in a rural area where the internet is spotty at best. I drove it there with the message still up with no problems. Among other minor errors the machine found it said there was an error with the VVT and the camshaft positioning sensor. My friend thinks it could be the timing belt. But I think that would definitely throw a code and the engine would run really ruff so I ruled that out. So we then took it for a drive around the country side to get real time data. It didn't tell us anything new. On the way back suddenly it became gutless, I could floor it and barely get it up to 30mph, the engine started to rattle or clatter from the top end but I wouldn't say knock and it also started pushing out copious amounts of blue smoke! Fortunately we were really close to his shop when this started so I was able to practically coast it in and park it. (And still no new error messages) So that's where I'm at. Sorry for the diatribe. Anybody have any ideas? This friggin car has me at my wit's end. Thank You for your time. I would really appreciate any help anyone can give me.