Jeff,
Virtually any nozzle will suffice, though there are Dry System specific ones out there. NOS Comes to mind being the more common Dry Nozzle, though I TNT just released a Dry Nozzle also. Positioning is really not the most important factor, but I suppose ideal for a single nozzle system, ~2-4" away from the TB, and preferrably betwen the Blades would be
best But even if you had it installed in a similar position as an OEM IAT Sensor it should work great for ya.
As far as using a Dry N20 System w/ the Speed Pro, my understanding is that unless you have a Sequential system (And we all know what a PITA that is on these LT Motor'd cars) that you're best off with a Wet system.
If you do have a Sequential system then just disregard this.

Then my question would be how'd yua resolve the Cam Position Sensor issues... as I'd like to go to a Sequential system myself LOL.
Good luck!
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Kurtis Tamez
LT4-396.com
97 Z28 LT4-396
94 Firehawk LT1-396