You know, the O2 sensor is a different beast. Since it's a stand alone controller (LC-1), and it's entirely digital, I'm not sure how it should be grounded. The official stance is to ground both of its grounds (heater and electronics) to the same place as all the other stuff, which I did. However, some people suggest taking the heater ground directly to the battery. Later models also have a dedicated sensor ground, in which case shielding and twisting the pairs would make sense. In my case, not so much.
Plus, the "noise" is "real" in that the controller thinks it's seeing that noise. It's on both the analog output (to the Megasquirt) as well as the digital serial output- so it's not being induced on the sensor analog output. We did a test and powered the O2 off its own battery, and noise was less, but not by much. We then switched to current limiting resistors for the injectors, instead of PWM mode, and noise went away. So it's definitely the injectors. However, the current limiting resistor method was nearly impossible to get tuned. Maybe after more research, but I think PWM is the better method (and cleaner).
By the way, all the Megasquirt analog sensors have a dedicated ground line. They must all tie to this line, which goes to a dedicated filtered ground on the PC board. All other grounds are direct to the engine block, but (as instructed) not to the same place as the batter ground.
More work to do, but at least I can drive it now! Time to break out the oscilloscope and see what's actually going on with the power lines.