Thoughts and comments requested.

Put a rebuilt 3VZE in my truck, or is it a car?, and immediately got hit with Code 52. It was still at the shop, so he replaced the Knock sensor wire, hoping that was the problem. Started it up, same code. opened it up, replaced the new knock sensor (that came on the rebuild) with the Original KS, and mounted it on the engine lift hook. Still have the code, but, the engine does not go into a "limp, or safe" mode.
Mechanic was perplexed, but he said it was running good, timing shows no malfunctions at highway speeds, so I took it out and have driven it 600 miles now with no perceivable problems.
My question is, why? I have an always on check engine light, no noticeable reduction in performance and while I didn't have 500 miles on it after I bought it before the head gasket meltdown, I actually don't have a lot of miles under my arse with this vehicle.
My second question is what is acceptable gas mileage with this beast? My third question is what can i do to possibly improve on the 14-16 MPG I presently enjoy(?)
BTW, I spoke with a former Toyota Service manager(we're related), who, after listening to the above, with slightly more detail, suggested a piece of black tape over the light.

Boox

 

What "should" happen is significantly retarded timing. But if your base timing was set up too far advanced, you might have accidentally split the difference and ended up with something that worked. It's not a long term solution; if your broken (or shorted) wire jiggles back into place, you'll end up with ignition so advanced it will probably stop running.

By the way, while there are some who suggest that mounting the knock sensor to the engine hook could work, I just don't believe it.
First, measure carefully. I get 20mpg hwy, 15+ city. Second, SLOW DOWN. I drive around 61mph on the hwy, and easing it up to 65 costs about 10%. But it's your choice.
Either he (she) is pulling your leg, or inadvertently disclosing why he (she) is a "former" Service manager.

 

I never relocated the knock sensor to the engine hook. I always made an adapter from a ford transmission line brass fitting and cut it down so the knock sensor would fit into that and the head. What I do know is that on the 3vze it is recommended the original knock sensor and wire be replaced during the rebuild with new ones. Still having problems it might be in the wiring.

 

Thanks for the responses guys. With just over 1000 miles on the rebuild, the longest trip has been to central NY, and the mileage, at 65-70mph on the interstate, and max of 60 on the state highways averaged 16.
As to the timing, it is at Factory specs, And as to the "black tape" comment, the author is also the author of several Toyota service recommendations and is recognized by Toyota dealers for some other innovations. I respect his opinion, based on his qualifications, without reservation. Besides which we're related.
As an aside to my previous comments, I did notice what seemed to me to be excessive downshifting form the transmission at the previously mentioned highway speeds. My normal daily driving is about 10-15 miles, in to town for coffee and some errands, back home and parked for the day. (I'm retired) Since the rebuild, the longest trip was about 100 miles, and the terrain around me is pretty flat. (St. Lawrence river Valley).