The exhaust pipe coming off the collector should work fine. You can also buy collectors with an O2 bung already installed, but its probably cheaper to have one welded in to the straight pipe after the collector. The LC-1 kit includes the weld-in bung, so you just need to have a shop make a hole in the pipe (the guy I went to just used his torch), and then weld the bung into the top of the pipe.
You can install the bung and plug it with a bolt if you aren't ready to complete the installation. You should not leave the sensor installed in the pipe unless it is powered when the engine is running.
The LC-1 also includes instructions for a portable AFR meter installation. You put the sensor into a section of pipe, stick the pipe into into the existing tailpipe, and then wire or clip it in place. You can power the LC-1 off the cigarette lighter, or even with a small spare battery.