I believe that code is referring to the pre-heater circuit part of the forward sensor, rather than the actual oxygen sensor portion. That's what happened on my 03 V70 NA (but aft sensor in my case).
Try this: Clear the code. Then turn the ignition on for about ten seconds but don't start the engine, and turn the ignition back off. Then connect the scanner and check to see if the code P0032 re-asserted itself. If it did, then the problem most likely lies in the pre-heater portion of the sensor, since you didn't actually run the engine which would be needed in order to get an actual oxygen level error.
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