Finally, a little productive conversation on the subject.
Ground is a relative thing. I have worked on aviation electronics where ground was a 300VAC waveform relative to earth ground. I also agree that ground relative to what the PCM considers ground rather than chassis ground is what is important as that is how the PCM will interpret the incoming signal. The PCM ground does find its way down to the chassis ground lug above the side sill and eventually finds its way back to the battery by running the length of the chassis frame.
Noise suppression on the ground return lines (and signal lines) at the PCM is a common technique. Generally that consists of ferrite beads or similar which help to scrub some of the noise off the ground line before it can get back into (or out of) the electronics. This is generally done for EMI and protection of the electronics rather than for improving sensor reading accuracy per se. We deal with designing electronics and sensors that reside near high voltage arc lamps that have an ignition pulse of 5KV to 25KV, not unlike a spark plug wire. It is surprising how much noise can get coupled into the sensor lines causing bad sensor readings or even damage to the controller electronics.
I believe that the crux of the problem is that the ground as seen at the sensor is not the same ground as the ground referenced by the PCM.
The K4 ground circuit which is the sensor grounding circuit is composed of 18AWG wire which goes to about a dozen sensors from the front air temp sensor all the way back to the back battery temp sensor before it connects to a single pin on the PCM. I would estimate that this wire would have to be at least 30' long with all its stubs if not a lot more. Being so long, relatively thin, being designed with a number of stubs out to the sensors and crossing so many areas of the car, that cable is going to act a bit like an antenna and will pick up some noise from the other electrical systems in the car. The map sensor is very close to the ignition wires for instance and could easily have some noise coupling into the ground wire. The sensor grounds do not appear to be grounded at any of the sensors as someone incorrectly noted above. I am sure that under static conditions, the grounds near the sensors would all read close to gnd (<1 ohm) with a DVM. Under dynamic conditions with the motor running I am sure that the ground has a fair amount of noise on it if checked with a scope.
The sensor outputs back to the PCM are referenced to the ground at the end of this wire where it is connected to the particular sensor, not at the PCM end where all the wires converge on the PCM ground. For instance, the TPS is a potentiometer referenced to the ground wire on one side and +5V on the other side. If the ground wire at the sensor end where to bounce up by .5V due to a noise spike on the line, the output of the TPS would change by about 10% relative to the more solid ground as referenced back on the PCM.
Grounding the sensor ground to the chassis at some of the distal points, while not providing an optimal ground is probably still better than the ground as seen on the cable and hence the sensor and closer to the ground as seen at the PCM, leading to the improvement that has been seen by some.
My thinking to improve upon this (without rewiring the whole ground system) was simply to add a heavy gauge copper cable from the battery ground (the best ground on the car) up to a point near the front of the car and use it to establish a more solid ground than the chassis can provide for both the PCM and the sensors. Star wiring from the newly established ground point out to some of the key sensors would just be tapped into the existing ground wires at the sensors.
If I get some time, I will drag a digital storage O'scope home and take some snapshots of the ground/signal performance at the sensors and perhaps bring a little science into the discussion. Unfortunately, the most interesting phenomenon may not show up while idling in the garage. If the issue can be observed and quantified, the effect of any grounding changes can be better quantified.
I'm just guessing here, but I'm expecting about a 50HP SOTP improvement from the change
