"Speed Sensor - At range/performance"


I am pretty sure I have ordered the right part but for the life of me I can not find where this sensor is. Help?

Also:

Under the dash there with a Red/Black wire with a green clip hanging there loose. The actual connector its self has a male prong on the end. I am assuming it should be attached to something? After chasing the wire through the firewall and into the engine bay it looks like it goes to a clip that attaches to the distributor cap.

Can anyone with a 98 GTI 2.0L confirm that this should be attached to something?

 

Also the speedometer works, and so does the tachometer and odometer. So I honestly don't know what this could be.