Sensor must be mounted between the engine and the catalytic converters (in application where they are used). If no catalytic converters are used, then the sensor should be close to the hedder collector, where the exhaust is hot and each cylinder is represented.
The O2 sensor must be installed in the side or top of the exhaust pipe. The installation angle of the wideband O2 sensor should be inclined at least 10? towards horizontal (electrical connection upwards). Thus preventing the collection of liquids between sensor housing and sensor element during the cold start phase.
Tightening torque: 40-60 Nm (29-44 ft-lbs). Material characteristics and strength of the thread must be appropriate.
On turbo applications install the sensor after the turbo and before the catalytic converter. The high exhaust pressure before the turbo interferes with the measurement and the high exhaust temperatures encountered can damage the sensor.
Most factory O2 sensor locations are acceptable for the wideband sensor but be sure they follow the general guidelines above. If you require a bung to weld in the exhaust they are available from K&N - part # 85-21688. Bung specifications are also given in this drawing from Bosch.
Under-floor installation of the sensor at a distance from the engine requires an additional check of the following points: a) positioning of the sensor with respect to stone impact hazard, b) positioning and fixing of cable and connector with respect to mechanical damage, cable bending stress and thermal stress. The sensor must not be exposed to strong mechanical shocks (e.g. while the sensor is installed). Otherwise the sensor element may crack without visible damage to the sensor housing.
Hope this helps