Just an update, FYI...
We replaced the bank 1 upstream oxygen sensor this weekend. Put in the Bosch 13115. The procedure took a little over an hour using the wonderful directions posted in this newsgroup (to which I will post an update as we thought it would be helpful to inform anyone who may need to do this what specific tools are needed). The process involved a bit more swearing than initially thought but everything went flawlessly.
To clear the code once the new sensor was installed, I tried something that the guy at the parts store told me: disconnect the battery for about 5 min and when you reconnect it, the code will be cleared. So the CEL is no longer on!

We showed the old sensor to a friend of a friend who used to work at Ford. He informed us that we should probably have the fuel injectors cleaned as that is most likely the reason why the sensor got hot and burned. Anyone hear anything of the sorts?