Very good stuff from JR.
For trans temp gauges, I like to put them in the output circuit (fluid line) from the trans to the first-line cooler or heat exchanger. This shows me the hottest fluid in the system. You can use a manifold from Autometer if desired.
I prefer elec trans temp gauges because as JR noted, the capillary tube length is a restriction otherwise (my last install used about 8' of wire, so a cap tube would not have worked, as most are 6').
You can also put a sender in the pan itself.
If you have a 94-95 EEC or later, you can use the EEC to view TOT (and datalog it).
To nip issues in the toosh with E-senders (especially trans temp E-senders, where they are not mounted in grounded receptacles), I recommend using a dedicated ground on the sender body itself. Otherwise readings can be off. Look for a sender to ground reading of less than 1.0 Ohm when you're done.
Good luck.