A couple of questions:
Why do I even need to relocate the sensor? Pacesetter sent me the kit, but I do not know the purpose of it.
Secondly, my magnaflow cat has a spot for it as well as the header, so I was wondering if it is it absolutely necessary to do when I put in my full exhaust?
They sent you the kit because you need to extend the stock wiring for the first o2 sensor, which reads your air/fuel ratio, in order for it to reach the bung on the header. The bung on your Magnaflow cat is for the second o2 sensor that tells the cars computer whether or not the cat is functioning properly. So yes, it is necessary.
Oh alright, I see. I'm just just extending the sensor from where it is, down the pipe to it's new location.
Yup. Its not as hard as it may seem. Only took me 15 minutes to it when I installed my header. Just don't cut all foure wires at once, just do them one at a time.