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I also recently got this trouble code (alerted to it by check engine light), and the car started running like a real dog. I swapped the knock sensor with one off a 240, cleared the trouble code, and the car started running like new again. Put the old one back on, and the problem returned, so I concluded that the knock sensor was faulty. Just when I was headed to the dealership to buy another one (at a cost of $80) I started looking closely at the connector on the knock sensor I thought was faulty... there was a little bit of rust, so I took a wire brush to it and reinstalled it. Now the "broken" sensor is OK again.
So perhaps there is nothing wrong with your knock sensor either. Try cleaning the connectors before you spend any $ on a replacement part.
Good luck!
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