Can you provide an example from the scriptures of Udi's power to solve personal problems, like mental distress or sleep issues?

Certainly. Chapter 35 details a specific instance concerning a gentleman from Bandra who suffered from severe sleep disturbances. He was tormented nightly by dreams of his deceased father, who would verbally abuse him. After all other efforts failed, a Sai devotee advised him to use Sai Baba's Udi. The devotee instructed him to apply a little Udi to his head before sleeping, keep a packet of it under his pillow, and hold faith in Sai. As Chapter 35 recounts, the effect was immediate. The man fell into a deep sleep, the troubling dreams ceased completely, and he was overjoyed, demonstrating the potent influence of Udi in removing distress.