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What I did on my '01 2500 was to order the "transmission temp sensor manifold" from Jannetty Racing. What'cha do is cut out about a 3" piece of your transmission line that runs to the cooler on the passenger side of the engine, and install this piece w/ the supplied compression fittings. Put your sensor in there, and you will be getting readings from roughly 12" away from the spot that the fluid leaves the transmission. My needle fluctuates quite a bit, so I know that every little thing you do driving works your transmission.
The other way to do it would probably be to buy the transmission line from a 94/95 auto from DC, and put it on... I was told it has a port built into it for the sensor, but also that the line was about $90. The Jannetty kit cost me $50 shipped, and that was second day air so I could install it tonight before my long road trip. Took me 45 minutes to install, and I take a lot of time doing things so that I get them done right.
Here's three links that have more info on this install then you'll be needing.
I have a 1995,CTD, auto. trans. line has a sender port, but already has a sender in it. What does this sender do,or what could it be monitoring? Am I looking at the correct line? jps