How accurate is tuning with a O2 sensor if you're only watching one set of cylinders?

Much better than no O2 sensor! :-) Kidding aside, that is a question I can't answer. Each collector is looking at three cylinders. I expect some inbalance but it'll be so much better than nothing that I'm not concerned. The best place to put the sensor is in the full exhaust stream, second best is as much as possible. You'll see many OEM installations with the O2 mounted only on one header. Many current OEMs will have multiple sensors (24V Taurus has 4). I debated on placing the sensor in the pipe where the two collectors dump into (single exhaust) but decided against. Too far away and I need a location to tune from before the final exhaust is fabricated. Can't see it in the pictures but I have bungs in both collectors for future testing.

What is the part no of the o2 setup you're using?
It's a special NTK item sold in a Bosch box. Don't remember the part number. They cost from $125-160 when you can find them. Notice that it has five wires. See www.diy-wb.com for part number.

Can I mount the 02 bung in one of my head pipes?
I would imagine that you could. Maybe down aways in the pipe to save the trouble of drilling and welding the cast iron. In the "Y" pipe if you've got one.

BTW, how do you change the cruising mixture on a Holley 390??
Jets? Haven't gotten there yet.

PRW