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Hi Andy,
I suppose that piston slap might affect the sensor although it is a different frequency of noise than a detonation. John Sargent could probably give you more info on that. My 88 765T is so noisy with piston slap, that I am replacing the engine. So far it has not affected the running which is very strong.
I had a failed knock sensor on the 940. It had no power which led me to try the timing adjustment. Since there is no adjustment on the 940, I took a sensor off of another 88 that I had here. Once it was installed, the 940 ran perfectly.
You could pull the knock sensor off of the block and wrap it in foam rubber. Set the timing at 12 degree BTDC, if the car runs better, that is probably the source of your frustration.
I saw that someone mentioned that your damper might have turned on the hub. If you bring the engine to TDC (top dead center) by the valve position on number 1 cylinder (and the distributor rotor pointing to number 1), you can remark the damper with a piece of soap stone for a timing reference.
Regards,
--
Will Dallas, www.willdallas.us, www.willdallas.org, www.willdallas.com 86 245 DL 205K miles, 93 940 250K miles, 88 765 GLE 149K miles, 86 244 DL 200K Miles
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