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You can run the car fine without - by unplugging the O2 sensor or grounding the test lead located on the left strut tower, the ECU defaults to a constant 50% duty cycle at the frequency valve. At that point the system functions just like a non-lambda k-jet setup, and mixture can be set manually using the mixture adjustment screw on the metering plate arm. I'm pretty sure you need to keep that frequency valve plugged in and receiving that 50% signal though.
Just one other note, on the turbos the Lambda system's frequency valve is also what provides the boost enrichment - a function that you wouldn't want to lose. As far as I know ALL 240 turbos had an O2 sensor.
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Chris, Dartmouth NS Canada 70 M-B 280SE, 83 245DL, 84 244 turbo, 90 780 turbo, 92 VW Golf, 90 740 Rex/Regina
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