This is EXACTLY what has happened to mine. It went for MOT yesterday and failed also on emmisions, mine was 0.5% and should be 0.3 or less. I also had head gasket problems previous, unfortunately I had to replace my engine as the head was damaged. My mechanic says that the CAT is contaminated, so I am having mine replaced tomorrow, will let you know how it goes. He says that the engine sensors will get it to about 0.5%ish and then the CAT removes the last bit when it has warmed up. I am assuming that all the other readings for HC etc were OK.