I agree with the EGT idea. You can get a lot of information from a good EGT gauge that can be used to tune your timing, and it will be a lot more reliable than using a knock sensor.
But regardless of the method, you'll need to first get a baseline (EGT or knock reading) so that you know where the knock starts. The additional advantage of EGT is that it can be read at any rpm, whereas the knock sensors become dead weight at high rpm.
If you are interested, Texas Instruments makes specialized knock sensing digital signal processors. They have a bunch of knock sensing information available at the website, for example:
http://focus.ti.com/docs/apps/...a039. It just goes to show you how complex it is to even get a reliable knock signal.
So EGT is the way to go for the home tuner, IMHO.