Adjusting the Printer

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To install the proximity sensor, print out 2 of these holders and use 2 M3 screws each to secure in place. See image below:

 When installing the sensor, make sure it is only about 1-2mm or so higher than the bottom of the print nozzle. If you deviate much from this, you run the chance of either sending the nozzle or the sensor into the printer bed. Just trust me on this one :) The picture below shows the proper position.

Now enter the following command to null out the printer nozzle height setting. I always make sure the nozzle is only about 1cm or so from the bed but I do not believe it matters:
M851 Z0

Next setting to store the values:
M500

Now lets move the head to the center (takes a few seconds):
G28

The next command puts the nozzle where the printer thinks zero is (you double checked the proximity sensor being 1-2mm above the nozzle, right?):
G1 X110 Y110

Ok here we need to adjust the nozzle to just grab the paper on the heat bed but not have much resistance when pulling it through.
Once satisfied we need to tell the printer this is the proper Z0 value:
G92 Z0

And have it read the difference between the two:
G30 X110 Y110

This will cause the printer to spew something like this out:
< Bed X: 110.00 Y: 110.00 Z: 0.32
< X:110.00 Y:65.00 Z:10.30 E:0.00 Count X:11000 Y:6500 Z:4120

We are interested in the Z: 0.32 value. Take this value (or whatever you have for your printer) and negate it for the following command:
M851 Z-0.32 (or whatever your value is)

Then store it:
M500

And that's it!