There's a good bit of discussion on the P0420 code in this topic:
'03 LE - P0420 Code
Dealer will tell you to replace the cat and the sensors all at once. After hearing what others have said, you've started down the right path by starting with the one sensor.
I found that my car throws a P0420 code under a specific set of conditions -- usually interstate driving, over 1 hour in duration, at speeds of 65-70 MPH. Around town, I don't have an issue. I invested in a code reader to reset the light, and have chalked it up to a quirky sensor.
I forget what the exhaust system warranty is on the '03, but recall it may be 100k. If that's the case, you may want to talk to the dealer about the problem... you may get the cat replaced under warranty.