I've had a look under both sides of the car. Left side looks near new. See pictures titled left1 left2 and left3. Right side is bare and smooth as a babies bum. I tried scratching at it to find the indents but nope its just smooth underneath and for some reason... yellow. See right2 picture.
I guess its rusted away entirely.
As for the rubbing its got nothing to do with the ABS cuz my cars a rear wheel drive and the noise is coming from the front right arch. I've looked and it can only be the plastic faring its rubbing against, when under hard right cornering. I've decided its a non issue as the faring isnt even worn.
With regards to the o2 sensor are we sure there's a problem? From watching this video slight fluctuations +-0.1V is normal.
See 3:11:
Note: I have no idea if the average (looks to be about 0.275V) is normal for an MG so maybe something is wrong there.
Footnote: I've only watched about half an hour of youtube o2 sensor videos so could be totally wrong.