1996 Polo, 1.0L?, progressivly running worse

I recently purchased a 1996 Polo, 1.0L i believe, not real sure. It ran a little rich when i got it a month ago, but seems to be getting progressivly worse. When I start the car, right before the digital odometer shows the number of KM on the car it says "IN O2" which is something that started happening just a little while after I took it over. Not sure what it means, and i couldn't find an answer online. I am thinking it needs an O2 sensor change but they run about 110 Euro, so i'm trying to avoid that. If it makes a difference it feels flooded or at least bogged down between idle and about 2800rpms. New parts installed less than a month prior to taking it over are as follows: Timing belt, solenoid, battery, coil, plugs wires, distributer cap. Just looking for a good place to start(maybe just some good 'ol fashioned adjustment?) Thanks for the time and considerations.

Jet Mech

Hello from Canada, MMM Have a look at this site http//;www.aa/car.com/library/converter.htm Running rich kills converters. A plugged converter shuts your engine down exactly as you describe Allan

Great read. I'll have to check that out. Also, what would water, enough to form a medium size puddle over just a few minutes, exiting the exhaust with no water being burned from the cooling system mean? I'm wondering if it's just because we average about 60-80% humidity here in this part of germany.