What do you guys see as the best place to have the filter set at for the coolest air and proper pressure?

In the air box, protected from heat and dirt from the engine compartment. ;)

If you have to have an open-element conical filter, I would stuff it as far forward and away from the radiator as possible -- like down in the fender/behind the headlight. You'll also have to heat-shield it very well. I didn't have very good results on my '97. I personally think your best option is to keep the stock air box and run a cold air supply tube forward to the grill area (directly next to the radiator). I learned that from scandal669 and it worked the best on my truck.

I ran mine to the front of mygrill for true cold air. It woke my rig up!

side note- I don't think you are looking for pressure, just cooler air.