That O2 might be your whole problem. They do wear out over time. You can get a cheap 4-wire Bosch from any early 90's Ford V8 IIRC, same part with a different connector. Splice that in with solder if possible...those heater wires pull a lot of current on startup.
You might have a lazy thermostat too. Your car should be pretty close to the halfway point most of the time.
Another cause of high NOx is leaks in the intake hoses. Spray them down with throttle body cleaner while the car is idling. If the engine changes it's idle speed when you spray a particular hose, you know you have a leak. Definitely check that fat hose under the throttle body. I've seen them crack clean in half.