Can you unhook (unplug it at the block) the knock sensor and still run the engine..? I didn't know if it would react somehow with the ignition module..if not how could I jumper around the knock sensor temporarily...

The knock sensor grounds the blue wire when it detects a knock that is massaged by the knock module, so removing the wire will disable the knock system. You can run the motor. It's been done before.

I wouldn't run it long without it. I had one go bad and it fragged my engine before I knew it!

I was thinking about doing this, I don't know how to tell if it's pulling out timing, except if RPM's increase with it unhooked. What bad could happen if you had enough octane to prevent detonation while testing it?

I just left it unhooked when I swapped from a points type distributor, to a TBV with the knock sensor. The engine is a 1982 454/330. I figured either it was receiving a signal in the form of an electrical current, and it had to be either when it detects a knock, or when it does not detect a know. It must send a signal when it detects, because it works fine without it hooked up. If it was the other way around, I would have direct wired the proper voltage to the module.

Why would the rpm increase with the knock sensor disconnected?

If it senses a knock it pulls timing thereby reducing rpm slightly.