To go back to your original question, there is an oil level sensor in the oil pan. You should be able to see it screwed into the front side of the pan (front of the car/left side of the engine). I don't know if magnets will affect it. I guess there is only one way to find out. Remove them and see if the light goes out.

Ranger, click on the pics I posted above. I think you can see that the only reason my car is drivable while the replacment transmission is being built, is because I put extra magnets on the pan. I knew the end was coming, and I've effectively delayed it. The magnet in the pan is a joke. It'* also too far out from the natural circulation path to catch the critical particles.

One particle breeds many in time. Sticking free magnets on the pan may only extend the life of your trans a month, or even a week, but there is value in that when your trans is on it'* final leg.

Will,
I just looked at the pictures. I see what you are saying and I guess if you are just trying to delay the inevitable for a week or a month it may be of some help (though I am still not convinced). I just don't see much reason for it as a preventive measure. What the magnet doesn't catch, the filter will (engine or tranny). If there was a need for them I have to believe that the tranny engineers, who I sure hope know much more than I, would have put them in there in the first place. I seriously doubt that not having them in there was the reason for the demise of your tranny. Looking at the picture of your engine bay I suspect you are much younger than I and probably drive your car much harder than I (been there, done that). That has to take it'* toll, magnets or not.

That'* the plan, as soon as I can combine daylight with non-work clothes (friggin MN winters and a whole 3 hours of sunlight a day)

Well, it wasn't the magnet. LakevileSSEi and I had a "mini-mini-meet" (If you can call pulling codes in the Cracker Barrel parking lot a meet)

Got a 107 (Map Sensor Circuit Low Voltage) and 401 (EGR System Flow Insufficient). Niether on is going to cause me to panic. Did a couple of checks IAW my FSMs and will see what happens.

Thanks Lakevile!! Next time, you gotta let the Missus and I buy you lunch...