Re: right 02 sensor voltage 5.0!
Either the O2 went fubar (shorted thimble to heater, internal), or you have a short to power or VREF somewhere in the wiring. The O2s don't use 5vdc reference voltage, they produce their own. My 2¢.
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1986 Mustang GT w/T-Tops 
NOW: 5.0L Stock SB, X303 Cam, 700 cfm DP Holley, 289 '66 Heads, 1.7 RR, Richmond Gear 4+1 Tranny, Centerforce DF, 2.73 Gears
WIP: 3.90 Gears, LS Overhaul, Adj. LCA's & UCA's (Granatelli), T-Top weather striping and rear braces bodywork 
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