Do you know if yours is a Hall effect or Variable reluctance synchroniser ? I believe the 2 wire is Hall effect. The code means that the ECU is not recieving the TDC signal from the sensor circuit. The problem can be electrical or mechanical. The synchroniser (drive unit) can fail (the actuating vane can disintegrate or the magnet can fall out of the sensor causing the demise of the synchroniser). If you unplug it & connect up a voltmeter to the sensor plug & crank over the engine, you should get a pulsing reading on the voltmeter (will be low voltage; an analogue meter is best). If this is O.K. check the wiring towards the ECU for breaks or other damage or shorts.
Did you move the synchroniser ? if you did then it's likely that it needs re-timing. The ECU expects to see the signal within certain preset limits if it does not it throws the code. The engine runs on alternative strategy while the light is on.
Well theres some infoto get you going!
ATB Aeroman.
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Green-96, XLT 2wd, 3L Vulcan, from Ontario, Canada
All original powertrain except alternator & starter motor. 320,000 kms & going strong ! 
When describing the 96 Vulcan engine, the word Bullet proof is not too much of an exageration !!! Just a little TLC goes a LONG way.
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