Actually, 65535 errors seem to be pretty common in 1Z ECUs of that vintage.
If the ECU is is "chipped", and sockets have been installed (or if stock chips happen to be socketed), I would try removing the chips, cleaning the sockets and chips with contact cleaner and re-installing.
If that doesn't work, log the voltage your ECU is seeing on Termainal 30. With the engine running, it should be above 13V and nice and steady. If it's not, check power connections, and especially grounds.
-Uwe-