Hi mate,
Firstly the scraping at the rear - Has the car been lowered at all? I would remove the wheel and check to see if you can see any contact marks either on the wheel/tyre or on the body work or suspension components. It may also be worth checking the wheel bearing for any play.
MPG - yes lambda sensor could well be your problem. Have you noticed anything else like lumpy idling? The lambda sensor is fairly straight forward to change and will cost you around £50. They tend to be seized, so soak it in something like WD40 and leave it for a while first. As with any low MPG, you also want to be looking at other things such as tyre pressures, possible brake binding, tracking etc.
Full service - As well as the things you have mentioned, you may also want to consider gearbox oil change, disk and pads change, break fluid change, coolant change, depending on how worn they are or when they were last changed obviously!
Front shock - This is a fairly easy process, but CAN BE DANGEROUS!! Make sure you have a decent set of spring compressors, and dont undo the nut at the top of the shock until the spring is safely compressed by the spring compressors! I once saw a spring fly into the door of a brand new M3 when I used to work for BMW. The damage it did to the door was quite amazing considering, and you certainly wouldn't want it in your face! lol
The bolts at the bottom of the shock are often very difficult to get off, due to being exposed to wet and head and road grime, so again, soak them in something like WD40 and leave them for a while before trying to undo them.
Think thats all of it,
Hope that helps,
Alan