I installed an LM1 in my car and the instructions were clear on the sensor position. It stated the condensation would pool in the sender and damage it.
The other interesting thing they point out is the sensor must be heated at all times when the car is running. So once you install it in the pipe you must keep the electronics running.
The LM1 has helped my tunning a bunch.
Theo
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White WRX Family Wagon
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