I've got a homemade intake on my '96. I just have my IAT hanging in the engine bay. Is this bad?

Baaad
Engine bay temps are +130F

Drill a hole put it in

Depending on your setup. The best location is in the filter. You can extend the wires if necessary and add the sensor into the filter.

Bottom line: the IAT sensor reads the intake air temp and helps adjust fuel, etc. for maximum efficiency. If the sensor is just hanging in the engine bay it will be reading temps way higher than what'* really going into your throttle body and you will most likely be running lean (I think).

You want it to read the actual intake air temperature, thus the advice given above.

What did you use for your intake?

Yeah, this would be a good time to ask for pics. Then we can all chime in on the best place to put that IAT sensor.

metal pipe (insulated), with a plastic box (insulated)

Pat, I think he was asking the thread'* author, glorkar, lol.

Nice pics, though.