Cam hitting cam position sensor?

You can see that it's got a groove cut in the face of the sensor, by the camshaft, I presume...??
Obviously, it made me go hmmmm... but not having any other real options at the moment, I installed the new sensor, got it re-learned at the local stealership, and all was good.... except, I'm getting a 'ticking' noise, which I assume is the camshaft cutting the same groove in the new sensor...
Did I get the wrong part... are there different sensors for an LS2?
What else could be going wrong in there?
I'm pretty experienced at doing my own mechanical work, but this is the first LS powered car I've worked on, so the internals of the motor are new to me.
Any ideas?
The thrust plate is in the front...?
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Looks like I'm going to be tearing into the front of the motor...
BTW, whoever designed the bracket for the power steering fluid reservoir needs to die. Seriously. WTF. The first time I took it off it took almost two hours to fiddle f**k around with it to get the hoses off and get it loose. Fortunately I had the foresight to slot the outboard bolt hole on the bracket to make removal a 5 minute process this time. Is that really beyond the thinking of factory engineers??

If you ever have this thing off, take a dremel to it and just cut it so you can slide it over the bolt without having to remove it. Trust me, it will save you lots of headaches and cussing...

Problem is then it needs to be tuned, and if it's getting tuned, it really needs a CAI, and, and.... LOL
I'm just hoping I don't have a major problem hiding in there. There's no noises other than the tick of whatever is hitting the CPS, so I'm hopeful. It will probably be the weekend before I really have time to tear into it.
Also, if the cam is walking that much, I'd want to take a look at the cam lobes and lifter lobes. You can get a look at a few cam lobes by taking the intake manifold off but the only way to peek at the lifters is to yank the heads...
I'm still researching exactly what's involved, and wasn't aware the rack was in the way of pulling the balancer. That should be fun.
I just cleaned out my vehicle 'mad money' fund buying suspension for my Bronco project, so it needs some time to refill... The costs involved in a new cam and tune would probably put it out of service for at least a month. It's my wife's DD, and though we have other vehicles, she wouldn't be happy about it...

I'd really just like to get it fixed and back on the road.
I did intend to put headers and cam in eventually, but I'd rather do upgrades on my terms so I can do it right, rather than be pressured by time and short term budget issues.
Also, if the cam is walking that much, I'd want to take a look at the cam lobes and lifter lobes. You can get a look at a few cam lobes by taking the intake manifold off but the only way to peek at the lifters is to yank the heads...








