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Only had one experience with that 700/940 style gauge sender. Car came with a flickering needle as you describe - exactly what you'd expect with a bad connection at the harness or a loose nut on the gauge (from my 240 exp.). I pulled a sender at the junkyard just in case. Had another in my junkbox. Measured the resistance on the one I just pulled - it was wide open. Replaced the flickering one with the one from my collection, and no complaints since. My conclusion with 2 of 3 bad is the sender has problems.
I expect the knock sensor signal missing may mean more uncorrected detonation possible in your 87. Could result in an early demise of your rings and pistons?
Just guessing here- no experience running Chrysler (or is it Chrysler) ignition w/o its knock sensor.
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Art Benstein near Baltimore
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