Yeah around town in traffic I love the CT26 due to the quick spool and mid range grunt. I've driven a big 6.0L V8 around town and wasn't that impressed in the overall driveability advantage compared to the MR2.
 
ECU temp sensor looks pretty new to me (shiny copper/not faded) probably replaced by previous owner. I put in a new O2 sensor last year but didn't really notice any difference in economy - maybe the old one wasn't shagged? but I wouldn't have a clue if its working or not and looks like its wired fine. How can i test it?
Edit: I should note that it runs about 12.8l/100km in mostly city traffic mostly taking it easy.

There's a couple of basic tests outlined in the BGB, but the real indication is logging an AFR trace. Just make sure both are actually OEM as the temp sensor is Toyota specific, and the O2 is engine specific..so the universal ones don't quite cut it.
Only other thing that comes to mind is weeping injectors, although they usually show up as a hot start issue , after sitting for awhile.
Also the AFM temp sensor, if it's reading low will richen up EFI rather dramatically.

i wonder what a chipped ecu like the blitz, etc on the gen 2 running the 80/20 mix will do?
might be the right combination

I had a set of 3D techtom maps somewhere, that most of the chipped ECU's are based on. I'll post them up if I can locate them.
Anyhow, most noticeable was the EFI map where the only changes were to the very upper levels, where all the fuel dumping takes place, even then the altered values looked to be a bit on the conservative side. On the other hand, the Ign map was altered considerably, with added in values from around 3k or there abouts, naturally increasing at the upper levels to accomodate EFI changes.
I doubt there's much to be gained on 98 with these chipped ECU's due to the more aggressive Ign curve, but yes I think on an Ethanol blend like 80/20 there would be considerable gains for sure.
 

i went looking for e85 and found nothing, apparently the stopped supplting it to victoaria, well atleast the pump i went to anyway
so i couldnt test it out

I ran about 4 or so litres (thats all i could fit) in my Gen 2 on the weekend and that was even enough to make a difference, engine felt more 'lively' and wanted to rev more than usual. Pity the stock DP and substandard exhaust were holding it back...  gotta fix that soon!

I'm using E85 in my SW20 racer. I've heard that the fuel from Caltex is a lot more variable regarding quality compared to what you can buy from United servos.
No issues with the car so far. Had to buy 1000cc injectors. I already have a Walbro pump in the tank.
I'm producing approx 30 RWkW more so far. Final tune is on Wednesday.

wow 30kw from just using the new fuel and obviously tuning the ecu for it
best bang for buck mod lol

Yes Caltex fuel is variable and  that must be the reason why they don't call it 'E85' but 'E-Flex' as the ratio of ULP to Ethanol does vary. I don't think United servos sell E85 here in Adelaide but I should really find out.
 
The extra 30 kW would mainly come from the increased timing advance that higher octane would allow. 

was talking to one of my mechanic friends yesterday.
he was saying that leaving the E85 in the tank for a long time is not advisable unless the fuel lines etc have been changed to E85 compatible ones, this is a guy who owns a few hi powered wrxs and is helping tune a 300kw E85 fuelled rex. (which has all the fuel lines etc changed over) but i wonder if using the 80/20 mix will actually affect anything. he didnt seem to have an answer for that
he also said that shell sell a racing fuel which is 100ron and safer to use but costs a bit more
 
cheers