I just completed four weeks of troubleshooting a false knock problem to where I believe mine is solved. I am no expert on this, just a victim that had to figure it out. The end result for me was leaving the knock sensor very loose with no thread sealant. I only wish that someone had mentioned 14 inch pounds as being possible, because that is about what mine ended up at. I had it torqued to 14 ft lbs and had attrocious Kr, 60 deg+. I am no longer getting false knock and relatively certain that any knock that does come in will be picked up. I have Kr still coming through mildly on WOT at high revs and I can also see Kr when I tap on the motor with a wrench. The end result for me (and I am not speaking for the masses out there, only me) is a much better running car that now has it's freedom to run without 60 degrees of Kr stopping it. It's an amazing difference and I am the one that had to accept the fact that the sensor is installed the way I did it and also take responsibility if it fails and blows something. Mine won't work properly if torqued to 14 ft lb.
Just felt I needed to add my latest experience as others have helped me in the past. As soon as I heal from my surgery this week, I am headed back to the track to see what difference I have made.
Andy