Purpose
As you try to get more and more performance from an engine, you need to take more and more precautions so you don't blow anything up :) A knock sensor will sense when the engine is knocking or pinging; two situations which can cause your engine to fail and fast! If you plan on advancing the ignition timing above 12 degrees BTDC, or if you are having problems with knocking, this upgrade is a must for you.Where do you find the knock sensor?
The total price for all of the above should come to around $150-200 USD or so (used, from a junkyard).
Big thanks to Josh, a fellow VW enthusiast for this information!!
If you have any questions, you can e-mail me, but because I haven't performed the upgrade myself, I cannot relate anything from experience; you can also contact Josh with questions about this.