Lionelzxl2012 - Did my best to show the spot where it attaches, but when you take the one off of your current PS-1, the new one goes into the exact same hole. TO answer your 2nd question, it does indeed cause the car to sit up higher. I put it next to an NYC PS-1 and you can see it is a few mm higher. That is because on the new truck, the screw socket is a few mm thicker, hence the supplied longer screw. It came with a brass sleeve, but I cannot determine the orientation, but I am sure it serves a purpose. I tighten down the screw until the truck does not move from side to side, then I back it out about 1/4 to a /12 turn and that seems about right. I also have Lionel part number 6-14078 coming in and I plan to try that one next. Maybe it won't lift the car up higher.
Thanks,
Mike