Welcome to the site!
Nice! another turbo guy.
You do not need a knock sensor to run that turbo set-up, but it will be safer on the engine to run a knock sensor.
What type of cyl head an integral type cyl head?
That turbo is a bit small for your 5.0liter.
You can use the 1981 Turbo Trans Am turbocharger which is a bit better for flow, almost a direct bolt-on. Needs a little bit of tweaking.
As with almost all street driven turbo set-ups, I recommend some type of methanol injection kit. Especially on a hot air/draw through system like yours.
MBHD
