Yes, you can use a heated O2 sensor with a 7747 and you should be using a heated O2 sensor with long tubes. The one time I tried the non-heated O2 in a collector, the system would go lean every time the engine returned to an idle after driving. If I left it long enough it would eventually throw an O2 code, but it took a minute or 2 of idling.
Personally, I would use a 4-wire O2 sensor. The connectors and sensors seem to be more common. Also, it gets rid of using the header for the sensor ground by wiring it directly. The O2 negative wire from the computer is the tan wire which was hooked to the rear passenger side intake bolt on the stock V8 applications. I believe the V6 applications had it in the same spot. It goes to D7 in the computer connector.
Part way down the page on this link is a table with the wire colors for different types of O2 sensors. Just match the wiring to the sensor you get. Hook the "heater" wires to switched power and ground, the "signal" wire to the old O2 purple wire and the "ground" wire to the tan wire.
http://www.aa1car.com/library/o2sensor.htm
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