We report real wave packet (WP) calculations of reaction probabilities, cross sections, rate constants, and product distributions of the reaction N(S-4)+O-2(X (3)Sigma(g)(-))-->NO(X (2)Pi)+O(P-3). We propagate initial WPs corresponding to several O-2 levels, and employ reactant coordinates and a flux method for calculating initial-state-resolved observables, or product coordinates and an asymptotic analysis for calculating state-to-state quantities. Exact or J-shifting calculations are carried out at total angular momentum J=0 or J>0, respectively. We employ the recent X (2)A(') S3 potential energy surface (PES) by Sayos and the earlier a (4)A(') PES by Duff In comparing S3 results with the WP ones of a previous X (2)A(') S2 PES, we find lower S3 energy thresholds and larger S3 probabilities, despite the higher S3 barrier. This finding is due to the different features of the doublet PESs in the reactant and product channels, at the transition state, and in the NO2 equilibrium region. We analyze the effects of the O-2 initial level and show that tunneling through the S3 barrier enhance the room-temperature rate constant by similar to3.7 times with respect to the previous S2 WP rate. The agreement with the room-temperature experimental result is thus notably improved. The NO vibrational distribution is inverted and the rotational ones are strongly oscillating. We explain these nonstatistical results showing that the reaction partners approach each other with a large impact parameter. The WP vibrational distribution is however different from that observed, which is oscillating. WP calculations show that the new S3 PES describes accurately several features of the X (2)A(') state, although a lowering of its barrier height by similar to0.56 kcal/mol should bring calculated and observed rate constants in full agreement.