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Mounting the sensor
The sensor needs to be welded into your transmission pan - well, more accurately, you weld in what's called a bung (this is like a nut, and has a threaded inside). A hole is drilled in the transmission pan, the bung is then welded over that hole, so that you have a spot where you can screw a sensor (looks like a bolt) into the transmission pan.
The thought of drilling and welding my only transmission pan made me nervous. I was able to pick up a new pan off of ebay for only $45, so I went with that. I took it to my local metal shop, and had them weld on the bung.
Here are some shots of the new Wrangler transmission pan
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