Do the following. Install new catalytic converter, OEM cat preferably. If CEL is on check the code as it might be EGR, if so, fix EGR by cleaning ports and cleaning the EGR unit by spraying some carbon cleaner. If you need to you can change the plugs and wires as it might help. After you install the new OEM cat do an Italian tune up then go straight to AirCare, you should pass.
Yes, its an automatic Prelude as the VIN has a 2 after BB6. Unless it has been 5speed swapped already.
Lastly, join VancouverPreludeClub.net
If you haven't already done so.
I have a aftermarket intake and full Mugen exhaust but recently needed a new catalytic converter in order to pass AirCare. Honda Preludes equipped with a H22A4 rely heavily on the cat to clean up all the junk. I purchased a OEM replacement cat which is not OEM Honda and my readings were a bit better then before with my JDM cat. However, I did an Italian tune up for about an hour before going to the AirCare center.
My readings before and after:
Hope this helps
Cheers
Mike