The big advantage to the LM1 is it's accuracy.
A 'normal' O2 sensor sends rich-to-lean readings by sending information to your gauge via a change between 0 and 1 volt, it's considered a 'narrow band' of information, and thus not very accurate. Think of a regular "on-off" light switch, and you're close to how they work. It's Lean...rich...lean...rich...etc.
By contrast, the LM1 sensor is a 'wide band' sensor which reads and sends data across a change from 0-5 volts. Remember, it's sending the exact same data (how lean, or how rich) but now we have five times the space to send the data. Thus, we can be five times more accurate then a narrow band sensor.
You will need to install an O2 sensor bung into your exhaust, and the supplied wide-band sensor that comes with the LM1 kit. You can certainly use it to help tune the idf's, but you would certainly want to understand how to tune via the air-fuel ratio.
HTH,
-Dave