My Grandmother's Camry had a P0420 (bad catalytic converter) before. I check the exhaust for leak, bad O2 sensors, talk about reflashing the ECU. But at the end it was a bad catalytic convertor But later I found an easy fix.
I bought a pack of Spark plug Non-fouler/defouler for $4. Drill a 1/2" hole almost though the center to clear the O2 sensor. Screw it onto the post O2 sensor and install it back on the exhaust system. It have pass 4 years of inspections and now at 157,000 mile no CEL.
Here's the package (Sorry I had to borrow a pic from the net)
Here it is installed on the post O2 sensor on the 2AZ-FE, The 5S-FE is farther back on the exhaust.
Here's how it works. The Pre (before) catalytic converter O2 sensor deals with Air/Fuel ratio and measure the exhaust gas. The Post (after) O2 sensor only measure the different of the exhaust gas after the convertor. By moving the sensor a little back from the exhaust gas, it tricks the sensor to think there are less emission. The car still run prefect,
Only install it on the post sensor after the catalytic convertor.
Of course the correct repair is to replace the catalytic converter but $954, I'll go for four bucks. On the 2001 Camry with the 4 cylinders, the post O2 sensor is at the middle of the exhaust system. Just install a defouler there and done.