[Scott65]

I would shield only the signal wire. Shielding grounded to sensor return ground, ecu wire. The end by the crank insulated where it can't make ground. I use 12v on mine for crank and cam. Clean switched 12v. Like I mentioned earlier my ecu, crank and cam power comes from a dedicated fused, switched source.
ETA: Did you make the ground you ran for the test your main ground from the battery? You can create ground loops if you left another ground from the battery Goin somewhere else. My battery(trunk mounted) has a 00 welding cable as a ground to the cylinder head and all Ecu related grounds go there too. It seems nit picky or particular, but I assumed there was a good reason for their directions, and followed as literally as I understood.