The pan isn't the best place, it will be the coolest part of the system, but is better than no gauge at all. Unless you have a aftermarket pan with a port you will have to weld one in the stock pan. The best place for the sender is in the output line to the cooler. One of the diesel shops in the east (Janetty Racing?) sells a tee kit to do this for around $30. What many have done to elimate the chance for leaks with a tee is buy an output line for a '94-'95 RH transmission, it has a port for the sender built in, costs a little less than $100.