Clean the pcv system hoses and oil trap and as well as checking all of your other vacuum hoses (especially elbows) as well as your intercooler hoses from the one coming off of the trottle body, all the say to the one that comes off the lower, driver's side of the intercooler and curves up and over to enter the turbo...and this will help your boost more than anything. You can order silicon hoses at a savings from stylin motors and it will also help with boost. Here is a link for them: http://www.stylinmotors.com/volvo.html
This in itself may help your knock sensor issue. Good luck!
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon. My cars have been running so well lately they've got me worried.
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