Today, I tested the Oxygen sensor with my old Harbor Freight, Fluke copy, DMM. I doubt that this is as good as pro equipment, but it does have a moving-bar graph under the voltage value that moves fairly quickly.
First, I thought I'd test the heater circuit. So, I pulled the connectors apart. I found that the heater connector had corrosion on the terminals (boot has tail broken off) which I cleaned with Deoxit. The main-sensor wire has stainless terminals, I believe, but the insulator body of the male connector on the car's harness crumbled apart into several pieces. I dug those out, reconnected and made my measurements.
When I last tested this, shortly after I bought my SPG, it would only read .5 volts, unlike my '85 that would vary up and down. At the time, I thought that that was weird. Now, I get varying voltage from about 0.2 something, to around 0.75. It speeds up when I raise the RPMs. Plus, now the heater is getting 15.0 volts (maybe the alternator is over-charging?).
Looking back in my notes from about six years ago, I find that I got fault code 12112, which the Bentley manual says is "Oxygen sensor self-compensating circuit problem (incorrect air-fuel ratio at idle)". The Bentley has no corrective actions for this, but I assumed it meant I had a vacuum leak. Now, I find the Factory Manual has a more explicit explanation:
I really don't know if the Lambda sensor was working or not, but it appears to be now. Whether it moves fast enough, I cannot say. And, over the years, I have corrected a few vacuum leaks - but perhaps there are more?
I also tightened the clamp on the MAF that I removed the replace the air filter and I sprayed some Deoxit on the connector terminals, even though they looked clean.
I have questions about the distributor: It seems to lack any centrifugal advance, but the vacuum advance/retard unit has to move this mechanism to get the correct timing if I'm understanding it. How do these coaxial shafts that move the rotor stay lubricated? And could they stick creating static or incorrect timing? The distributor that is in there now is a used unit - are there critical differences in the vacuum units, or the distributors themselves, among different B202s?
On the cat: I'm not saying you are wrong ReverendPaul, but for now I would like to follow other leads first. If it comes to a cat replacement, I've replaced two on the '85 and they made little difference. Currently, there is a new one on the '85 I could use. I foolishly let the muffler shop torch the SAAB cat off that car the second time. But I still have the original cat from the first replacement that I could also try.