the knock sensors are tough. i have never fixed them in either of my supras, but my red one is throwing that code now as well. there are 2 knock sensors, on the drive side of the engine, near the furl rail. they are a pain in the arse to get to.
most of the time, the sensor is fine, and it is the cable that has a short it in due to the age and searing heat in the engine. people have replaced them with heavy duty co-axial cable wire, and move on to other problems.
if you go check out
www.supras.com, follow the link to the TSRM(Toyota Service and Repair Manual), you can print off exact instructions to fix and replace the knock sensors or cable.
cheeeers. ben
p.s. after you get your done, how bout coming over to help me with mine.