I own a V6 and definitively the best way cure the motor oil smell is to swap your engine oil for popcorn butter-oil. Found the orville-redenbacher to be similar to a 5w40, and quiets down my lifters and crank bearings. And it smells great! You can find it at Wally-world @ 10.50 /gal.
Using the oil dipstick to check your oil is lame. The germans put it just to make sure their canadian, american and mexican customers felt "at ease", albeit just a placebo thing, ressembling the way fords and chevy's have always been serviced. In our passats the oil dipstick goes into some stupid well where a bit of oil is always in, but has no connection with the engine whatsoever. The ECU varies constantly the oil level in the dipstick well for you to feel it changes over time.
The german (correct) way to check the oil level is:
1. Lift your car in jack stands
2. Remove the oil drain plug
3. Immediately place your thumb in the drain hole
4. Use the Vag tool VL-75645361 and screw it in the drain hole
5. Measure the amount of manometric pressure on the Vag tool
6. Turn on the car
7. Use vag com to monitor the oil temperature
8. When oil temp reaches 45°C +/- 3° check the manometric pressure again
9. If you observe a variation of 0.001% in the manometric pressure, then you are good to go.
10. Remove the tool and place the oil drain plug.
11. Add aproximately enough new oil to make up for the one you dripped during the process (typ. 185 mL +/- 15mL)
12. Use only approved VW505.00 /ACEA B3/B4 oils.
13. Do this every 3 days.
It's easy.