C3261 Austin 16 is described as Fuel System Too Rich, which basically means bank 1's oxygen sensor has detected a rich condition of fuel. This means there's not enough oxygen in the exhaust from too much fuel being delivered into the air and gas mixture for combusion. So if the problem persists despite of your diagnosis, then you should never hesitate to take your vehicle to your dealer or to a qualified mechanic.
Possible Causes :
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Look for rubbing, scraping, bare wires, worn spots or melted plastic connectors. Pull the connectors apart and carefully look at the terminals (the metal parts) inside the connectors. Look for missing ground strap or a rusty ground where the fuel tank is grounded to the frame. Check for damage to the wiring harness connector.
Diagnostic trouble code C3261 Austin 16 is not difficult to diagnose and repair. Thus, it always pays to have a qualified technician to look after your vehicle should this error code arise.
Diagnosing this code requires the engine to be in good running shape, without unmetered air entering the engine. If other codes that relates to misfiring condition, lean running or air entering the engine is present, then you must first fix those error codes before C3261 Austin 16.
Fortunately, C3261 Austin 16 is a fairly common OBD code, meaning that it applies to all makes and models of vehicles made after 1996.