Toyota has finally acknowledged this problem! The have started a "Limited Service Campaign" to fix this VVT-i hose problem. The bad news is the LSC only covers 2005-2006 Avalons and 2006 RAV4's. This could change--according to the LSC: "Toyota is currently investigating how this condition may affect other Toyota and Lexus vehicles."
This LSC document is available for downloading here:
Download T-CP-90K-0001-W.pdf from Sendspace.com - send big files the easy way