toyhacker

Hi, I have hacked in an older 22re into my 88 4Runner. I have two issues. 1). is the CEL is on, Knock Sensor code, as the block did not have the spot for the Sensor i did not put it in right away, i have since installed it slightly below the fuel filter, but still have the CEL, my continuitys checks out but i do not have the equipment to see the pattern coming from the sensor? I wonder if it isphysically too low, away from the top of the stroke to generate a signal. DOES the ECM NEED the signal, or is it just if you have pininging issues. 2. There is an increasingly strong miss coming from the engine on shifts between 2nd and third mostly.
Increasingly poor power on the hiway, ( i am thinking the Cat Conv.is plugging up) 165,000 miles on the truck. My last hiway trip i was pushing it so hard the engine developed a wristpin/piston slap.? We are not monitored for emissions here, can i punch out the guts of the Cat Convertor and still have the O2 sensor (mounted after the Cat) function "properly".
any and all help is greatly appreciated!
THANKS.