yep you are running rich,or the cat isnt getting hot enough to burn off anything.
had the same problem with my 22re.
replaced the O2 with a few other things like ecu temp sensor and knock sensor and advanced timing a bit and bam it passed even with the nasty cat on it.
again like willard mentioned timing is very important when it comes to smog. being a little off will make it not pass or pass.
