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At 38k id imagine still the original lambda's.
If its hesitant, it wont be Lambda related - sounds like a misfire (Coilpack/HT Leads/Injecor/Spark plug related) If anything, swap the Lambda's about, the downstream one's the buisness end, the one plugged into the cat essentially does f**k all
Love it, big fan of the ST Fiesta's.
The gearbox is on a par with Honda's Civic, i'd say. My brother had a 190bhp one, my only gripe is the size of the wheels, 16's would have been perfect.
It would just be a nightmare if your local dealer was a bit arsey about it.
I do recall a thread on some Seat forum where a guys K1 was circa 340bhp and it suffered some form of seriously expensive reapir work and the dealer voided it due to the masses amount of aftermarket work done to it, it...