I forgot about this the other day. Had a convo today at school about this exact topic.
ATF works well, ATF is heavy on cleansers. My recommendation for this treatment would be 4 qts of cheapo oil, 1 qt of ATF. Drive it for a little bit (maybe 50-100 miles) and do an oil change with good oil.
The you have your seafoam and similar treatments. Just run those the way they say to run it (I think seafoam says half the can in the tank, 1/4 in the vacuum brake booster line and 1/4 into the oil fill).
You also could run synthetic oil for the increased cleansers. If you want to do this and want it super clean, I would recommend doing an oil change every 1,000 miles with a high quality synthetic oil until the sludge is gone.
Of course you also have your motor flushes.
If you're doing this, clean your throttle body while you're at it (as I said earlier). If you're going to clean your TB, take it off. If you clean it with the TB on, you're just getting all that gunk off of your TB and into your engine (It makes me laugh when people do this). I would also run some concentrated fuel system cleaner. Chevron makes one (Techron, of course) that is highly concentrated (higher than their normal fuel). You could also simply run seafoam in your fuel.
If it is really THAT bad, I would also pull your oil pan off and clean the sludge out of that and change the filter on the pickup line (if our's has one? I haven't had my jeep's oil pan off).
Be prepared for high oil consumption after a good cleaning.