Thats a little close to the turbo. The sensors don't like heat. Most run it after the bend right before the cat or test pipe. It should be alright for now but might want to think about moving it downstream a little.
Did you follow the LC-1 directions for calibrating? Power on 30sec before plugging in the sensor? Then power off and plug it in. Turn power back on and the controller will run a calibration sequence.
(This is done with the sensor in open air)
What are you watching afr's on? XD-16 gauge, scanmaster, powerlogger, logworks?
XD-16 gauge and Logworks software read a digital signal from the LC-1 controller where the powerlogger, scanmaster and a analog gauge read anaolg output voltage.
First need to determine if the analog output is matching the digital reading.
You can do that by connecting to the controller to Logworks software and comparing that to your scanmaster or powerlogger readings. Or if you have the XD-16 gauge, you can compare that to the sm or logger.
Make sure the reading match and we'll take it from there.