Why tuning based on O2 readings can be a bad thing...
Then I put the car on the dyno at Camaro Superfest this past weekend. Right away Eric said the car was knocking like crazy, and he wouldn't take it up past 5500 RPM. I was in the car with him on the dyno, with A-Tap hooked up, and I showed him that there was no knock retard kicking in. He replied that whether A-Tap was showing it or not, he could HEAR the knock very obviously. Then he showed me the A/F graph... 12.2 to 1 at 3250 RPM, then it leaned out to almost 13.5 to 1 at 4750 RPM!!!

He let me bump up the power enrichment table to approximately stock while the car was sitting on the dyno, and we ran it again. This time it was a little rich at points, dipping to 10.8 to 1 at 5500 RPM. But no more knock, and I picked up 10 RWHP above 4800 RPM.
I still have some tuning to do... Need to get that A/F just a little leaner... But I'll do my tuning on a dyno from now on, thanks!
The moral: You can't always trust your KR readings and your O2's... (I may just need new O2's, as these have nearly 40,000 miles on them. But I wouldn't have known that since I haven't been getting any SES lights.) Just thought I'd pass on my experiences...
Gary
12.5 on Dyno is what I try for when setting up N2O, gives about 12.8 on street, and with NX jets which are a hair rich anyway you achieve a real world of 12.5 on spray.
I think if you get the spark, and octane up, you should be bale to lean it out to a 12.8 on dyno and see more than you are now w/out KR, but every engine cobo is different.
Good-luck.

