mhm ashley kept pointing out that the passat smells like stuff is burning and so i spent the last couple of hours trying to figure out what it could be.

The smell comes front the driver side of the car, so maybe this?

I'd bet you have the "oil seeping from cam adjuster" problem. The cam adjuster for the right bank is at the rear and directly above the exhaust pipe...if oil drips down it hits pipe and burns...the intake for the cabin air is right above it...so the fumes are sucked into the cabin when heater or AC is on and fan is blowin. I had same problem...Audi published TSB saying that PCV system should be replaced B4 replacing cam adjuster gaskets/seals or valve cover gaskets since clogged PVC can lead to increased crankcase pressure which forces oil by the seals...since it is way cheaper labor wise to replace PVC (and the parts to do so are about $90 online) I did this and oil seepage stopped...been almost a year and no problems!

does not sound to healthy (give me head ache) and so I guess I have to replace some more parts or live with the smell...