| I don't know how much you'd degrade its functionality by omitting the shielding but I assure you it will degrade its functionality some. The other folks are absolutely correct, test before re-wiring. The second pin on the knock sensor is not needed because the sensor itself is grounded. The second pin has absolutely nothing to do with the shielding. It's simply a redundant design: ground the sensor or use the extra pin. Knowing which pin is the right one, however, is not straight forward. I'm working on a detailed write-up to explain this.
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