If the sensor is near the "exit" of the exhuast, then yes, under light loads for sure (less exhaust flow/velocity) there is certainly going to be contamination from the ambient air.
However, O2 isn't looked at on a cold start, so that isn't going to affect that problem.
If I was home I'd go look the number up on the part bag for you, but since I'm not, all I can do is suggest searching the "tech article" forum (the part number thread) or if not there, go over to thirdgen.org and search for "afs-74 part number" without the quotes, and perhaps without the - between the afs and 74.
I even searched for you, but couldn't find it. At least based off my username, but I thought I had posted it.
Anyways, I think ac-delco.com(sp?) will let you cross reference between GM PN and the Delco AFS-74.
http://coloradok5.com/forums/showthread.php?t=53116&page=3&highlight=afs so I'm bored, sue me.

My post on that page. Page 4 (top post?) lists the 3 wire vehicle side connector for it, not sure with pigtail or not, but probably costly, I'd go wrecking yard, although I've had a hard time finding the O2 sensor connector on the newer stuff, even the S10's, it's so compact/stuffed in there.