It doesn't sound like you can run without it......
The needle lift sensor is located in the No. 1 injector
body. It operates as the other injectors but has a coil
which surrounds the shaft of an extended injection
needle. The coil is fed a DC supply from the ECM
which produces a magnetic field.
When the needle is moved under the influence of
fuel pressure, the magnetic field is disturbed which
induces an AC voltage in the coil. The induced
voltage is registered in the ECM as a reference point
for the start of the injection sequence.
The ECM uses the input signals from the needle lift
sensor, together with a signal from the CKP sensor,
to detect the actual start of injection. The ECM,
using inputs from the other sensors, calculates then
adjusts the injection timing of the fuel pump to
achieve optimum fuelling of the engine.
If the needle lift sensor fails, the malfunction
indicator lamp on the instrument panel is illuminated.
The ECM, which enters a default mode, continues to
function but with a reduction in engine performance
and lack of throttle response.