Is this a wide-band O2 sensor. The manufacturers have a recommended placement. I think I have a PDF from Bosche and perhaps one other. If you're interested, send me a message including your email and I'll send it to you (provided I find it).
From what I recall, the O2 sensor should be mounted 10* up from horizontal. The mounting position has to do with preventing condensation from pooling in the tip and ruining the sensor. That leaves you with four choices for mounting the bung.
With all respct to Jim's picture, the O2 sensor should be pointed slightly downward, so moisture doesn't collect and corrode the sensor; so locating it at the 9:30 to 10:00 or 2:00 to 2:30 positions is probably most practical.
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