Regarding fuel aim table

Will the motec m1 need to recieve a lambda reading to adjust fuel to the aim table? Or after tuning to make the lambda as the aim table it will adjust by itself by the cooling temperature and other sensors?

The Fuel Mixture Aim Main table provided the target Lambda values -- no Lambda sensor is necessary to achieve this if the tuning has been done properly (and completely). You usually will need an Exhaust Lambda value to help tune, or if you wish to enable Closed Loop Fueling.

In general any serious effort with an M1 ECU needs to consider having an LTC installed permanently, for diagnostics at least. Running Closed Loop can maintain mixture control despite some of the tuning perhaps not covering the actual operating conditions. (ie. what happens when a damaged exhaust changes the engines VE? -- should the engine run with an incorrect mixture, or be allowed to correct for the changes in condition?)

You can tune an engine without lambda into the M1, you do need a lambda meter of some sort though, such as an external on the dyno. You can use the "L" key to enter your Lambda Aim and Actual Lambda values for the site that you are on, and let the M1 calculate the VE number for that load site, or you can use the Page Up/Page Down keys to manipulate the VE table directly to get the Lambda Actual and Aim values to match. It is much quicker to do this with lambda into the M1 directly however.

As David mentioned, having the lambda into the M1 and being able to use the engine protection functions that are available is worth the cost of the LTC to get it working.