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UPDATE 2: NASCAR impounded the #55 NAPA Toyota of driver/owner Michael Waltrip after qualifying. NASCAR officials confiscated the intake manifold off Waltrip's Camry during a prequalifying inspection. NASCAR officials don't know if Waltrip's car is illegal. Waltrip's fate is up in the air. Hunter said NASCAR officials decided to impound the car before qualifying, but allowed Waltrip to make a qualifying run after placing a new manifold on the car. Now NASCAR officials will inspect the entire car to determine if any violations exist. "Our inspectors will go over that car a with a fine-tooth comb," Hunter said. "I don't know how long we will keep it. As of right now, we do not know that the manifold is illegal, but we want to know." Robin Pemberton, NASCAR's director of competition, said officials sent the manifold to the NASCAR Research and Development Center in Concord, N.C., for testing Monday. "Our inspector caught a substance inside that we didn't really know what it was," Pemberton said about the manifold. Pemberton wouldn't give specifics about the problem, but Waltrip said inspectors found oil inside the manifold. "And it's not supposed to be there," Waltrip said. "So they took it to see why the oil was there. I don't really understand what is going on, and people here a lot smarter than me don't understand it either, but we'll figure it out. I'm sure it'll be fine." Hunter wasn't buying Waltrip's explanation. "Our inspection team was not comfortable that it was oil," Hunter said. Pemberton said the situation with the #55 problem was not specific to any individual manufacturer. (ESPN.com)(2-12-2007)
UPDATE 3: Waltrip's Toyota was impounded, with Hunter raising the possibility Waltrip will not be allowed to run that particular car in the 150s or the 500. "We'll go over that car with a fine-tooth comb ... and I don't know how long we'll keep it," Hunter said. Sterno? That's the horsepower trick that rivals suspect tripped up Waltrip when he was busted by NASCAR in the pre-qualifying inspection line for having some unknown "substance" in his intake manifold. NASCAR's Robin Pemberton, the vice president for competition, said that the manifold was being sent back the Concord R&D center for analysis. Presumably the substance could have been some type of oxidant, to provide a bit of horsepower for a short period of time. For years, stock-car teams have at times used such illegal chemical additives at Daytona and Talladega, where NASCAR severely restricts air to the engine, to limit speeds. Ty Norris, the general manager of Waltrip's team, insisted that it was not Sterno: "No, no, no, no. They found some oil in the manifold and said it shouldn't be there," Norris said. "They thought something was amiss. So we changed manifolds, and had the same issue. We showed NASCAR we thought it was blow-by engine oil.(Winston Salem Journal)(2-12-2007)
UPDATE 4: Waltrip told Marty Smith on ESPN's NASCAR Now that he will get the car back to practice on Wednesday and run the Gatorade Duel's 150. Smith also said that NASCAR told him penalties would not be announced until late Tuesday afternoon at the earliest or as late as Wednesday.(2-12-2007)

From Jayski.com:

UPDATE: the penalties to the #55 team:
Bobby Kennedy [MWR VP of Competition] and David Hyder [crew chief] ejected from track [Daytona] and suspended indefinitely
David Hyer fined $100,000
Michael Waltrip docked 100 driver points
Owner Buffy Waltrip docked 100 owenrs points
Michael Waltrip's qualifying time disallowed from Sunday's Daytona 500 qualfiying.
The substance was NOT jet fuel. Waltrip will be allowed to run the Gatorade Duel's in a back up car.(SPEED coverage of the NASCAR press conference). Scott Eggleston will be the interim crew chief for Waltrip. Eggleston won the Daytona 500 with Waltrip in 2001.(2-14-2007)
NASCAR Release: NASCAR announced Wednesday that it has confiscated the primary car of the #55 Toyota team that competes in the NASCAR Nextel Cup Series with driver Michael Waltrip, as a result of rule violations found during pre- and post-qualifying inspection for the Daytona 500. Crew chief Larry (David) Hyder and the team’s vice president of competition Bobby Kennedy have been ejected from this week’s events at Daytona International Speedway and suspended indefinitely. Hyder also has been fined $100,000.
NASCAR also penalized Waltrip with the loss of 100 driver championship points. His qualifying time from pole day on Feb. 11 was disallowed. Team owner Elizabeth (Buffy) Waltrip has been penalized 100 car owner championship points.
The actions taken by NASCAR resulted from violations of 12- 4-A (actions detrimental to stock car racing), 12-4-Q (car, car parts components and/or equipment not conforming to NASCAR rules) and 20-15.2C (gasoline must not be blended with alcohols, ethers or other oxygenates).
The confiscated car and the parts related to the violations will be transported to the NASCAR Research and Development Center in Concord, N.C. for further inspection. NASCAR said the investigation of the confiscated car is ongoing.(NASCAR PR)(2-14-2007)

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Waltrip: Team has 'circumstantial evidence,' no proof: #55-Michael Waltrip spent the last week hoping someone would take responsibility for the fuel additive that led to NASCAR sanctions and prompted Toyota to re-evaluate its relationship with the two-time Daytona 500 winner. He's still waiting. "We just keep digging, digging, digging," Waltrip said Saturday. "Toyota's going to help us. A lot of people are going to help us. We're going to find out what happened. We have a lot of circumstantial evidence that implicates a couple of folks, but we don't have any proof. So we'll just keep digging until we find out what happened. When I was a kid and I did something wrong I would kind of see the writing on the wall. I'd say, 'Uh-oh. Things are getting tight around here.' And you'd fess up. No one's elected to do that." Waltrip added that if anyone is implicated in the cheating scandal, that person likely would be fired. "Somebody didn't get the company philosophy, which is we're going to beat them by working hard and working smart and not by cheating," he said. "I felt like I just had three kids and I was real proud of them, and one of my kids let me down, and you know how bad that hurts. In return, I let a lot of people down, because ultimately I'm responsible." Waltrip was docked 100 series points for tampering with fuel. Crew chief David Hyder was fined $100,000. Hyder and team director Bobby Kennedy also were kicked out of Daytona International Speedway. Waltrip's car was impounded, forcing him to miss two practice sessions and sending him into a backup ride for qualifying. Nonetheless, he drove his way into the Daytona 500 and will start 15th on Sunday. His #55 car sustained some damage in the qualifying race and was partly stripped down to the bare metal for Saturday's final practice -- Waltrip's first drafting practice at Daytona since October. "Time will tell what we're capable of," said Waltrip, who posted the slowest time Saturday. "I've done this with the haves, and I've done this with the have-nots. Our team feels a whole lot like the haves, and that makes me feel good."(Associated Press/ESPN.com)(2-18-2007)

NASCAR to announce #55 substance next week: NASCAR is expected to announce next week at California what exactly they found in the fuel system of Michael Waltrip’s #55 Toyota Camry after Daytona 500 qualifying last Sunday. Waltrip’s car was found to have an unidentified, gel-like performance additive, which NASCAR inspectors have sent out for laboratory analysis. Results of the lab tests aren’t complete yet, said a source familiar with the investigation. Those results will be disclosed next week, most likely during the race weekend at California Speedway in Fontana. So far, all NASCAR has said specifically about the substance is that they know what it isn’t [jet fuel], not what it is. That will change soon. NASCAR officials also confirmed that the examination of Waltrip’s confiscated car is continuing. In 2000, when Jeremy Mayfield’s car was found to have tainted fuel at Talladega, it was nearly two weeks after his car failed inspection before test results of his fuel were made public.(SpeedTV.com)(2-17-2007)