It's difficult to tell how bad a sludge build up problem can be from looking in there. Get a very bright flashlight and shine it away from the baffle on the underside of the valve cover. Some sludge may settle on the top side of that baffle, but very little compared to the build up around the cams. It's a very narrow view, but if it's there, you'll see it. Ask if the valve cover gaskets have been changed recently. It's not likely that someone did them in an effort to remove sludge, but if they were stupid enough to do it anyway, then there will probably be a lot of sludge blocking oil passages and the initial problem causing the light would be a clogged oil pickup screen in the oil pan. Also, if it is sludged to the point of causing an oil light at 290k, you're most likely not going to win any kind of battle over it short of pulling the heads and spending more money than you would by just replacing the engine. If you do end up buying it and you see some signs of sludge under the baffle, one of the first things I'd do is pull the oil pan and clean that oil pickup tube. It'll probably get rid of your oil light, but your days will still be numbered. Also in this case, do not pull the valve covers.