Bryan, I was hoping the digital output would be better in that regard, sounds like it is. I will have to experiment with that sometime soon, cause the unit does have digital output as well as analog. (although this unit doesnt have the fine adjustment pot like some others do)
As for mounting, I decided to put it on the left z idler instead of the right because there is so much going on at the right it is a PITA to access over there. I got sick of reaching between the filament, my light, and behind the idler to make adjustments. I put it right up front where I can access it easily. I just printed a quick mount for the sensor that clamps onto the smooth rod, then made a quick mount for the screw that goes on the idler, then made a coupler that puts the magnet on the end of the screw. I used a magnet I had laying around from a custom guitar pickup project I worked on some time ago. The first draft of the parts wasn't perfect but works...
Here is a picture....
PS the part that mounts the screw on the idler grips the wooden frame on the end, that is why it only needs one screw....
EDIT:
I switched over to using the digital pin on the hall sensor and it's even better. The z-axis now homes just like it did with the mechanical endstop but much more accurate. Either way the hall sensor works and is very accurate, but it would have been a PITA to have to lift the head 3mm any time you wanted to home it. Also, in digital mode you don't have to invert the z endstop in the firmware.
BTW, I am using an audio cable from an internal CDROM to connect the hall sensor board to the RAMPS board, you just need to re-arrange the wires to match the pinout depending if you want the digital or analog pin. The RAMPS pinout is always Signal-GND-VCC (mechanical endstops use SINGAL-GND only)