Your truck must be from a state that had strick emissions testing or something, my dads doesnt have it nor does mine.
Are you able to get pics of this knock sensor?
Are you able to get pics of this knock sensor?
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The knock sensor - drivers side low on the block - is needed for the computer to function properly and it is an easy item to find. I've never seen an oil sensor on a 2.8.
Now back to your original problem: If you don't need smog inspections, try for a DuraSpark conversion and don't worry about these things. The holes in the head get plugged, you ignore the knock sensor and so forth. All components of the factory computer system must be working for the engine to run properly if you have the computer system.