The sensor is probably the last item that would go bad.
Here are other items to check. The VR sensor feeds an A/C signal into the EGR controller on your car. The EGR controller they sends a signal to the tach module in the cluster. The EGR controller gets its power from the OVP (Over Voltage Protection) Relay.
The very first thing to check would be the fuse on the OVP. Then you can pull the plug off the EGR controller and check for voltage on pin 1 (see image) If you've got good voltage there, you can turn your attention to the other components, which are not that easy to check. Check the plug on the EGR controller - some have reported corrosion there that prevented the component from working. You can check for continuity of the VR sensor and wiring by checking pins 16 and 20. To check the tach module itself, you'd almost need to source one at the junk yard or borrow a cluster from a known working car. Same for the EGR controller.
To test the sensor you'd almost need a scope. Theoretically you could rig up a trigger wheel and run it against the system, but you've got a technical problem and that is that the sensor takes its signal off the flywheel teeth - that's a lot of cycles per second to try to emulate with a make shift trigger wheel. (I rigged up this kind of a system when I was trying to set up my speedometer, but the speedometer only uses a 4 tooth wheel to it was a lot simpler)
Not saying it couldn't be the sensor, just that they almost never fail - no moving parts; no electronics; no power; nothing to wear, just a coil and a wire and a an in-line connector.
