yes - you drill a 1/2 inch hole in the pan.
no - you do not tap it.
the plug kit is a hollow pipe, with hex head on outside and big threaded nut inside. this holds it in the pan. then there is an inner plug where you drain the oil. it is not magnetic. it installs in about 10 minutes. the only trouble people might have is they may not have a 1/2" drill bit. i'll post a pic tonight.

 

http://www.pavementsucks.com/tech/trans.php

Here is a link to a write up done on it

 

funny this came up... i was just looking underneath yesterday thinking that would be a fun project to do... instead of using the store boughten ones...i got a chunk of solid alum. tube.. 1" diam. gonna cut off about a 1" of it.. drill. tap and weld it to the bottom of the pan.. and then use a slide hammer attached to a bolt thats screwed into the slug, and hammer a vally to pool the fluid.. nothing big.. but suttle enough to help and draining the fluid better..

OR i might do it at the stammed edge and weld the bung in at a 45deg angle...and then just jack the front of the truck up.. or drive it on ramps to pool the fluid to the rear..

 

pics

 

I would do it on the side, not the bottom. Less chance of getting it hung up on something. For example, here is how mine is on my PML pan.

[IMG]local://upfiles/9095/BB4442F5FCC34401B6ADF38AE76B92BC.jpg[/IMG]