That's a steep cost for the O2 sensor. I had the orig one on my '89 245 go out @ 245k.
My NOx was ~680, which is considered 'marginally acceptable' reading, and indicates a bad cat or mixture problem that caused the cat to go bad. The damage to the cat was done, so replacing the O2 sensor alone wasn't enough. I replaced the cat which started to rattle and the NOx went to 12!
I would suspect that you've clogged up the new cat from the problem that existed before you replaced it. Sorry to say that your problems may not be over.
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'89 245 Sportwagon, '04 V70 2.5T Sportwagon
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