So as expected the O2 responses were really bad using the little extensions tube.
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I ended up ordering the Aeroflow
AF49-1539 O2 sensor LSA extension leads. Note that some connectors are different between VF and VF2. So if you are using the workshop manual be aware that they could be different. That is the case with both O2 sensors. The VF2 uses the same connector as shown on the LSA section of the manual.
I don't know what I was thinking when I decided not to use the extension lead, especially on bank 2. The access to the O2 sensor connector is a pain to remove and I have spend many hours fighting with it in the past. Despite that , I still installed the connector on the stock position while installing the cylinder head. What a stupid idea! So I found myself again struggling with the connector. I ended up removing the intake manifold to be able to disconnect it and install the extension harness.
After removing the stupid extension tubes everything was fine, at least with the air-fuel ratio.
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The good news is that I think the top end service was successful. On the first start the lifters were very noise and it was a bit of a worry but after a while they were sounding ok. All the sensors are reading ok when comparing to logs from the past. However she still sounding not so healthy. Pretty much the same as before. On the video it sounds much worse than it is, especially when listening on the phone speaker without the bass .
I really hope I will find some time to attack the bottom end myself. It had lots of fun doing the heads.