Check engine light came on with about 1000 miles. Thought it might be the gas cap not on tightly, but brought it to the dealer, and they said it was a faulty knock sensor. Of course they don't have it in stock, so they have to order it. They said I can drive the car with no problem until then...not sure if I believe them.

Anyone know for sure if I can drive my car around with a bad knock sensor?

You should be fine...it is just a sensor...