Where do you guys get the inline style filter? That would be way easier than doing the spin on style.
I was thinking about doing this when I replace my radiator. However, I've also heard that it could clog and destroy the transmission. You can get this stuff on amazon.
The only problems that have been reported with Magnefines is that they can leak around the connectors. If you are worried about such, use new 3/8 ATF hose. I think the clogging filter is more myth than reality, or happens <.001% of the time; I have not seen one documented case of that kind of failure on the Web.
The best place is to put it where Ripcord has it, right after the coolant passed through all the coolers but before it reenters the transmission.