Matt,
I struggled with a P0401 off and on for about a year. According to Toyota manuals, an EGR system that is not functioning properly can cause detonation. Your 80 has a knock sensor that will retard the timing but, in my case, I didn't hear any pinging or feel any performance changes with retarded timing. In fact, I couldn't tell any difference at all... it's just that darn MIL light staring at you every time you start the truck. Drove me crazy and I couldn't take the worrying that it might mask another problem.
There are 4 major components to the EGR system; the EGR modulator, the EGR valve, the EGR temp sensor, and the VSV for EGR. The failure can be in any of those and we have had people resolve their issues with each part. Sometimes a new modulator fixes the problems, sometimes a cleaing of the EGR valve and/or the temp sensor. Several have found a defective VSV and replacing it fixed the problem.
In addition to the 4 components, there are various hoses and electrical connections. Some have found hoses connected incorrectly; some have found clogged hoses; some have found hoses disconnected. Dan reported that a Toyota Master Mechanic struggled with a customer's EGR problem and evenually found a clogged passageway inside the manifold. Hoses are the cheap fix if you're lucky.
A few have found that clearing the P0401 was all that was needed and the code has not returned. That's a real cheap fix.
Bottom line is the EGR system a SYSTEM. There isn't a silver bullet fix. As Rick (landtank) has explained to many people with this problem, you have to approach it with knowledge, reference material, testing tools, and then tackle the problem systematically. Or you can take my approach and buy and replace individual pieces until you deplete the Cruiser fund then take it to someone you trust and pay them to fix the P0401.
-B-