P0320 code question

[2006 eddie bauer]

I have been working on a 2006 4.0 for my son, and when driving he other day I stopped at a traffic signal and when I went to accelerate the engine stumbled at first and then ran normally after the one stumble issue. When I got home 10 miles later, I plugged in my reader and got a pending P0320 code (distributor input circuit fault) . I have not been able to find a lot of info on this code on this particular vehicle. From what I have found it could be a crankshaft position sensor. I visually inspected the cps for breaks, unplugged harness, etc and didn't see any glaring issues. I did notice that the wires from the sensor come up between the block and thermostat housing, and that the black split loom material that covers the shielded wire is broken where it may have rubbed the thermostat housing at some point. definately an old break - I noticed it when repairing a bad injector a couple of onths ago, but I didn't do anything more than rejoin the loom with some black tape.

I was wondering what the purpose of the shielded wire is, and if I find a problem in this area does the shielding on the loom act as a ground, or simply a shield. If I find a break in the shielding, can it just be taped or does it require one continuous run of the shielding?

Any thoughts on troubleshooting the code, or the shielded wire would be much appreciated!