I have a 2000 corolla LE with 180,000 miles. I had the CAT replaced with an aftermarket Magnaflow (welded in) that the shop welded in about 15,000 miles ago and CEL came on after about 5,000 miles with P0420. Took it back to the shop said the cat was fine and they also verified both O2 sensors were working correctly. I had no noticeable problems with the car and MPG and operation was still normal. Needed to get it inspected (MA) and was told the only option for it to pass was to pay $1500 at the dealer for an official toyota CAT.
I found this fix on a a different forum involving a spark plug defouler, drilling it out, and attaching it the rear O2 sensor. Rented an O2 sensor wrench from autozone and was even able to get the rear sensor off without lifting up the car at all (with a hammer and lots of PV Blaster). Link to photo instructional and part below.
http://www.k-series.com/forum/showth...hanical-02-Sim
http://www.autozone.com/autozone/cat...&brandName=OEM
2,000 miles later I have my inspection sticker, no CEL, and no drop in MPG or performance. Hope this helps.