The correct place to put the new sender-is where the old one now lives. Assuming you have an electric gauge, the new sender will screw in and be mas accurate or more so than the stock one. BTW: you cannot reconnect the stock gauge if you do it this way. DO NOT use the bleeder port. As to actual temperature readings-the engine will operate safely at 192-200 degrees and the fans should come on at that temp.
Have fun with the install-plan on taking the distributor off to get in there-other than that it is simple to run a new wire back to the gauge and find power under the dash.