code 1 oxygen sensor...should i upgrade??

my check engine light came on, i checked for the code and learned that its the 02 sensor that is giving me the problems. so i have a few questions.
1) how does an o2 sensor go bad?
2) i think i have two o2 sensors, so how do i tell which one needs to be replaced?
3) will a oem sensor be ok or should i get one of those 0-5v wideband ones due to my mods?

Man I typed a whole long lis to fthings to do, but then I realised you have a turbo. So what you need to do is reset the ecu and drive it around(after the motor is up to operating temp) and see if the mil comes back on. If so you may need to take your car to the shop that installed your hondata, b/c the dealership along with any other shop will not touch it due to the turbo and the hondata.

Also the wide band lamba sensor will not work with your ecu, you have to have more equipment than just the sensor, that is why they are so much money ;)

doh!! so then are you saying that i will need to get an oem type sensor?

Yes if the sensor is bad, I wouls let soeone look at it b/c the sensors are not cheap.