Does this usually mean the knock sensor just needs replaced?

Also, In the haynes manual it says V8's have two Knock sensors under the intake manifold. But here it shows the knock sensor on the RH side of the engine. I'm 90% sure I heard somewhere that on 93's it's on the RH side and there is only 1.

 

No, it means there is a fault in the circuit. Either the sensor, the connection, or the wiring.

 

It is on the passenger side of the block. It is in the place where the coolant drain plug would be.

 

If you have a multimeter see if it reads open, also resistance on a OBD-I car should be between 3.5-4.5k ohms. If the senor reads between that with the car not running but the key in run, you should read 5v I think it was at the wire.

I just looked at the books, damn the Haynes would be confusing if you never did one. Neither the Haynes nor Chiltons had a pic of the LT1, just the 3800 motor and the LS1.

Torque for the sensor is 14 ft-lbs. I don't know if its true or not but years ago at the dealership they said torquing that sensor to specs is vital to it operating correctly.

 

I used to get that code, I went ahead and changed the sensor and never got it again. Not saying that will fix your problem, but it did for mine.

 

Your wiring could be toasted (that runs through/by your headers)