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300bhp is definitely achievable n/a, i recently sold my k24 ep3 which was about 240-250bhp with an oem build, with a bit more money you could get close to 300 before even looking into ITB's with a 2.4, although as said this guys just bought over toda basically!
That aint a o2 sensor, your 2 lambda sensors are underneath the car on your catalytic convertor, someone else may confirm what that is but it will be that if its snapped off!
Nope! I had te heartbeat light on my dash when i went and got a diagnostics check done stopped and started the car and the fault was gone! Im changig my sensor tommorrow nite sowill report bk!