Wardog... Seems like there are differing opinions on the best place to put the sensor. I have used the B&M drain plug on my last two CTD's and the 1/8" NPT sensor screws right in and worked well. With the larger volume of fluid in the pan it takes considerably longer to indicate a temp reading, or changes in temp readings, and the temp of the fluid in the pan is always going to be considerably cooler (maybe 20-30 deg) than the outgoing fluid in the cooler line.
After reading many posts and considering different ideas and opinions I went with the temp port in the trans cooler line from MASSDIESEL. I found that the temp gauge responds much faster and gives a more accurate indication of the hottest fluid temps coming from the trans on the way to the coolers.
I think that the in-pan sensors are fine if you just want an overall trend in your fluid temp, but if you are concerned with how hot your fluid gets at any given time the cooler line is the best place, especially if you tow, maneuver a lot with a load, or spend a lot of time in stop & go traffic. It is interesting to see how fast the fluid temp can rise under these conditions. Some use one of the test ports on the trans and there has been a lot of discussion as to which one of them is best. I am no trans expert but I am quite sure the cooler line will give the hottest readings.
Another consideration is how long your temp sensor probe is. You have to be careful to locate a place on the pan where the probe will not interfere with the moving parts or contact the filter housing.
Most all gauges give some valuable info, you just need to understand what the readings actually mean, and what info you actually need.
IMHO.
Jim