yes lambda sensor will make a massive difference to economy and fueling if its not working right. I used to work for an exhaust manufacturer and i got some time to learn about how these work, also dad is a mechanic and i've seen the results of them fooking up. I've seen a car which was overfuelling, the lambda got a bit of fuel on it which caused it to stop fuel being injected as it thought there was too much......

Too much or too little fuel is deadly combination for a turbo'd car...... mmm melted pistons
 
Yeah without a doubt that is it as it is looking for a reading from a car with a cat, you can just remove as it will the same as now.
It needs mapping out.
 
I subscribe to threads :p

Yes it does but if it gets the wrong reading, it messes up the fueling as you are finding out.
Stop wasting your time ;) we now know the problem, the cure is getting it mapped out ;)
 
iirc its the pre-cat lambda sensor that controls mixture; the post cat as you say is to monitor the condition of the cat; and will out the eml light on if it reads too high - a spacer can be bought to stop it triggering this light.
 
Try a spacer and let us know, but you still have a fuelling issue.

I THINK the error code on vagcom might actually have been referring to the pre-cat lambda as it mentioned heat. So maybe that needs replacing

I'll wait until I take it back to P-torque and I'm sure they can sort it as said. :) I've actually thought mpg has been quite good but if it will turn out to be even better then I look forward to it :D