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I have my EGT guage hooked up so its ready when I put my turbo on. I have it just behind the oil pan. Is this a good location or shoul dI move it towards the turbo? What are good temps the i should see under boost (8psi)? Now when i am driving on the freeway it sits at 1200 degrees with the rpms at 3700.

You out it where????? generally mounted in either the manifold or the DP. There are arguments for both sides and you will find that people will stick to their opinion very strongly. Generally its a 50/50 split.

Its on the exaust pipe right below the oil pan. Well when I get the turbo no and get my exaust hooked up to the down pipe I will have it moved. What are good operating temps? On boost etc.