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All you have to do for a Upstream O2 sensor is just go to a muffler shop and have them weld a socket for the sensor to spin in and just get a simulator for the Downstream. At least this is how I would get away with fixing your problem without having to re-do the entire exhaust system.
After all the research I've done today this is a good possibility. Shouldn't matter which pipe I put the sensor on right?
if you only have one precat O2 sensor it should go after the Y pipe but before the cat converter, otherwise it is only going to know how one bank of cylinders are running and wont correct for the other at all