Re: I need a transmission temp gauge...
Correct me if I'm wrong but I would think return line temp would be useless, you'll be reading the temp of the fluid after the cooler has cooled it, not the actual temp of the fluid in the trans on the clutches and such. If you bake the fluid before it's cooled but are reading the temp after it's cooled this information is of no use.
I have heard of people using the diagnostic port, that's why I suggested it. I however have not. Personally I think I would install a bung in the pan, or a sensor in the sending line up to the cooler. The other option is just for ease of use. A simple "t" fitting can be installed in the cooling line and the sensor threaded into that, it's a relatively quick install as well using compression fittings. It all depends on where you want to get your temp.
Sorry theres really no simple answer as to whats best. Everyone has a different opinion.