I think you found your culprit. The item you have pictured that is on the block and just behind the flywheel is indeed the CPS (Crankshaft Position Sensor). It is very difficult to remove as I was going to replace mine (as a maint. item) but was unable to remove it. I couldn't imagine the engine running without it as it is the "distributor pickup" in effect and provides the signal for the engine spark timing. If it were me and I found the connector to be in unservicable shape, I'd clip one off a donor vehicle in a "heap yard" and splice it on in.
