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if you have done all the obvious repairs then you may have an issue with the pcm or wiring to it.. the knock sensor isnt crucial in driving as its only purpose is to get the best performance possible without the ping and knock created by to little or to much timing advancement done by the pcm..you can still drive it its just annoying seeing the light on.. if car does not run right then you have another issue like a miss in the engine.. check plugs wires coils
if idle sound is an issue.... then put a bigger turbo on ur engine... smaller turbo means lesser weight which means that even at idle the back pressure will spin ur turbo blades.... if ur turbo is spooning at idle.. it's a good thing most guys aim at doing that... Dont worry...Be happy
The cam dowel should be at 12:00. the hole in the cam sprocket should be line up with the cam dowel, with cam sprocket assembled to cam, you will see looking through the cam sprocket a red marking on the head, which lines up with the dowel. Down at the crank, make sure the cut out mark on the crank spocket is lined up with the notch on the oil pump cover.
need you to examine under the dash first you may have to remove any panels (lower Dash) to get a visual-look for relays connected to your crank wire-they need to be disconnected and reconnected to oringinal wires (they are color coded) try that first
1987 non-turbo: 10 deg Before Top Dead Center (BTDC) @700 rpm 1987 Turbo: 10 deg BTDC @650 rpm.
To set the timing, you will need to connect a jumper wire between terminals E1 and TE1 on the diagnostic terminal. This diagnostic terminal is located just aft of the engine compartment fuse box. It is a black plastic box marked "diagnostic" on the cover, which flips open to reveal the terminals inside. There is a diagram on the inside of the cover which explains the terminal positions. On the Turbo model, you need to remove the forward section of the engine cover to gain access to the number one spark plug wire.