it cant hurt to change the O2;
another thought; My 97 XJ has always been "alright" on power, but it never was as good as my 01 was. It's better now than that 01 ever was.
(and yes I'd had this done at one time on the 01, too)
Consider this;
I have recently taken the injectors off of my 97 XJ, and took them into a BOSCH injection place near me; just the injectors themselves, off of the engine; look for a place that advertises diesel injection service.
for those in the west/SW Chicago suburbs, I know of another place out your way (I know where they are but not the company name) i can tell you. out on I-55 out by Willowbrook, I think its called Midwest Fuel Injection. this place is about an hour away from me.
the place I use is Triangle Diesel, a few miles southwest of Kankakee IL, about 6 miles from me.
they take them apart (didn't know it was possible) replace screens and flush them while testing them electrically under load.
This way you seperate them from the engine and wiring, and isolate them so you eliminate the "christmas tree lights" effect--you know, if a lower string blows a bulb it kills the whole string--- allows to evaluate each one by itself...
$15 per injector; many shops just replace them, at alot higher cost; not usually necessary. just have this done to your persent set.
I have never, "not" noticed a difference, between before and after; no matter how good the engine seemed to run before. I do this to every vehicle I own, at least once during the time I have it. just as a matter of maintenance
any time I have a miss I cant find, I take the injectors to these guys; I have salvaged many that could be considered "bad" due to clogging, and found a few electrical duds along the way. they haven't charged me to check out any that have wound up being "duds" electrically, and I have had a couple (few+far between) that have been so badly plugged that they could not be flushed out.... theyll tell you this. 95% won't be "this" badly plugged.
now you may see all kinds of shops advertising injector flushes; usually at higher cost;($120-150 is common around here) but that doesn't isolate them from each other, or compare one to any other on the engine, nor does that get you any internal screens replaced>>> and you cannot see the spray pattern while they are on the engine; not as good but costs more??? and depending on your fuel rail one may get alot of cleaner thru it while more stubborn ones or further from the inlet of the rail, get little or none... this is basically the fuel injectors' equal to a carburetor overhaul.... a set of 6 will cost you right at $100 to have done. Easy to pull from the engine; drop em off at 8, they'll call you that afternoon and tell you they are done.....