If the timing is out the car would be ok to drive, depends how much out. Acceleration and top speed could be affected. The knock sensor is a sensor screwed into the block which monitors knocking(or pre ignition) , if this occurs the sensor sends a signal to the ecu telling it to retard the ignition timing. If the sensor was faulty you could have a problem with normal unleaded, or if the sensor was loose in the block it will tell the ecu the engine is knocking when it isn't, retarding the ignition timing which would affect performance.