Do not run it in the return hose, that is a stupid idea. You want to know what temperature the coolant is leaving the engine, not after it has been cooled by the radiator.
http://www.nissport.com sells adapters as well. You just cut a chunk out of your upper hose and clamp the adapter in the middle, screw in the sensor probe and ground it. This works well on the 25 and 26, but on the 20, space is very limited on the upper hose. With the koyo radiator I only have about 2 cm between the water neck and the radiator inlet pipe so I had to find a plan B.
Plan B is to get a digital fan controller that monitors the ecu's temp sensor (2 wire). I have the HKS unit and love it. It is very accurate and I can controll the fans and a water sprayer from the cabin based on temps. It has peak/hold and warning but costs about $180.
If anyone wants, I have a Nissport adapter as well as a Cyberdyne digital water temp gauge (black with red) with the sender. Like I said, it wont fit in my setup but if you had a 20 with stock radiator or a 25 or 26 it should work great.
$50 shipped within the US. The gauge was installed so the wires are there but may not be full length.