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running rich but led test point working, fails CO 200 1986

I have a brick which is failing CO (~1.4% vs a spec of ~1.0). HC and NOX are okay. The O2 sensor fluctuates between ~0.5 and ~0.7 volts. With an LED tester on the CO test point, I can adjust the AMM to get off, on/off or on states but the O2 sensor seems to always bounce between 0.5 to 0.7. If I remove the vacuum line from the FPR, I can get it to go full lean (i.e. 0 volts on the O2). I have set the timing and base idle per the specs, new plugs/cap/rotor etc. What is the LED test point indicating? I was under the impression that it was an indicator that the O2 sensor was above or below ~0.4 volts (on being high or rich and low being off or lean).
Thanks for your help.

jbrady
'86 240 180K







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