Diagnostic Aids
WARNING: This page is about a different car, the 1993 Cadillac Fleetwood. However, it is still accessible from the selected car via links, so may be relevant.
Check knock sensor signal circuit for a potential open or short to ground. An open knock signal circuit would cause 5-volt reference to remain high at ECM knock signal terminal. A short to ground in knock signal circuit would cause 5-volt reference signal to pull low to near zero volts. Resistance to ground through knock sensor should be 3300-4500 ohms. Also check for proper installation of MEM-CAL.