You live in HB, but the test was the two speed no load. HB should be ASM. What gives?

I'm not aware of the "conditioning", but that may be a change to the two-speed test, which hasn't been run on any of my cars since they went to the ASM test for non-attainment areas.

I assume your engine has the KE system, and adjusting the mechanical mixture must be done using the duty cycle method, not "by ear". If the basic setting is so lean that the system runs out of control authority, lean misfires could occur that will increase HC count. Your idle O2 at 0.00% says all the oxygen is being used by the catalysts, so lean misfire is the most like cause of the high HC at idle.

At 2500 there is still a little O2 left, but even if it's all consumed, I think HC might still be high, which, again, indicates an occasional misfire.

The first thing to do is check that the duty cycle is in spec, and a scope check of secondary wave form should show if there are misfires. Also, be sure the correct non-resistor spark plugs are installed.

You should also review my previous discussions, and as a last resort you can change the spark advance map.

http://www.peachparts.com/shopforum/showthread.php3?p=833484#post833484

The C02 percent at idle doesn't make sense - should be higher and you confused CO2 with CO.

Duke