Gen-Erix,
You're probably getting as good of MPG as you're going to get with an auto. Toss in 2 oz (no more) of Lucas Upper Cylindar Lube with each tank of gas. You should notice an MPG or three of gains. Don't bother swapping out the o2, odds are it's fine. You can test with a multi-meter if you want to verify.
major tune up, that sounds interesting, I assume that the timing belt isnt all that difficult?
My first time doing it took me all day. The lower rear bolts of the A/C compressor and Alternator are hard to get at. Be careful with the dist cap screws, the ones on mine were SUPER over-torqued, so the screws were sheared.
This is a 2-person job... so get a 6 pack, a Chilton manual and a friend. Will probably cost around $150 to do everything (cap, rotor, plugs & wires, belts, timing belt idler pulley, engine / trans / t-case diff oils, oil filter, coolant flush, coolant, seafoam...) if you have all the hand tools for it. Buy some cheap ATF, and toss 1/2 or the full quart in with the engine oil. Drive around for 1/2 to 1 tank of gas before doing your tune up & oil change (ATF is high in detergents / cleaners). Inspect the back of the head - you may notice a lot of oil there. This is a suzuki thing, and likely means the distributor o-rings need to be refreshed with PB blast. Do this first so the o-rings are soaking while doing other stuff. It MAY just mean the valve cover isn't snugged - check the bolts (DON'T over-torque). Follow the negative lead to where it grounds - clean those areas & make sure you're getting good contact. Have your battery tested if you can. DO NOT over-torque things, but check every bolt you see to see if they're loose. Over-torquing on an aluminum block is a good way to strip bolt holes.