Yes, it skips the tensioner, so you will most likely have problems getting a belt on, if you can get a correct length one
But you may be able to put the alternator and the belt on at the same time and keep the tension on it.
You are correct about the water pump not being on the main belt, it runs off the timing belt
As for the crank position sensor, its a little disc of metal about 2mm think with 12 points on it
Just take it off and file down the unneeded points. I'm not sure, but I'd guess the Wolf will need 4 points there.
Just make sure you keep the point pointing to the sensor when the motor is at TDC, dont file that one down.
Check with wolf how many points you will need