Im not saying this is your problem... but it could be.
The crankshaft woodruff key drives the crank sprocket which drives the cams. The woodruff key has a VERY thin tab that sticks out like an arm to catch the Crank Sprocket. When this key brakes it thows cam/crank timing codes because the cams/crank are no longer in time.
I had this issue when running the old ASP pulley. This is a known problem with some 4.7L and more common with 4.7L who have used the old un modified ASP pulleys. The reason there was an issue with the ASP pulley is because it did not mount against the sprocket... The factory damper when torqued clamps down onto the crank sprocket effectivly assisting in holding the sprocket securly into place... the ASP pulley fell about 1/8 in short so all that would drive the cam sprocket was the dinky tab of the woodruff key.
So... it may not be a sensor after all.
THE FIX...
If this is your problem the fix is to remove the entire front cover to expose the crankshaft snout. You will need to remove your cam timing chains. This is a good time to replace them if they are original. Then replace the crankshaft woodruff key and install your new timing set... basically just change the timing chain + woodruff key on the crank.
Because of this problem I had my crank modified to prevent this from EVER happening. I had my shop drill a small hole where the tab would stick out to catch the crank sprocket. I then had them install a dowel that would now drive the crank sprocket so now the woodruff key no longer drives my crank sprocket.
GREAT EXAMPLE OF WHAT TO LOOK FOR
http://www.dakota-durango.com/forum/showthread.php?t=112999
Good luck,
NICK
It could be that the crankshaft Woodruff key broke.