There's some confusion here. PAW utilises two frequencies. It receives ADS-B In on 1090 MHz and will both transmit and receive P3i protocol ADS-B PAW originated signals on 869 MHz utilising the new "Bridge" PCB.
There was discussion on this forum some months ago, regarding the use of PAW as a ground based radar like surveillance tool for use in airfield VCRs. This adaption wouldn't require the P3i TX, because we all know the airfield is there, why broadcast a signal of an immovable object? So hopefully, Lee will be incorporating some means to deselect the P3i TX for this application.
For use in an aircraft, you will need the DVB/T Tuner dongle that essentially receives 1090 ADS-B, as a minimum, however the completed PAW unit includes the Bridge and will allow aircraft without transponder's to broadcast and receive position reports (P3i) for display on your tablet or whatever, in the same way as those received via the 1090 frequency. So for this you definitely need the P3i TX as well as RX to be functioning.
I utilise an iPad Mini with a built in GPS. I have chosen to use also, the Ublox7 GPS dongle plugged into the PAW as Lee recommends. It's as cheap as chips and works well. I use EasyVFR navigation program and it gives me the choice of using either of the GPS sources. With SD I have a feeling that you need the Collision Aware app that Lee no longer supports, to be able to use the iOS GPS source, hence the recommendation to use the GPS dongle. If I ever get to connect the PAW serial output to my Becker transponder, I shall leave the PAW in our Eurostar utilising the GPS dongle to drive the 1090 ADS-B output so we can BE SEEN even if the pilot isn't using PAW because he's using a Garmin GPS, which isn't yet compatible with PAW.
Regarding antennae positions, I have obtained good results with the PAW unit velcro'd to the P2 cockpit longeron just forward of the clear vision vent, on the Eurostar. The PAW is mounted vertically so the dongles point downwards. The GPS dongle receives good signals in this position, the P3i antenna protrudes vertically above the longeron into the canopy space so should get a clear look out to Starboard, and the DVB/T antenna is velcro'd on the same longeron adjacent to the baggage shelf. The only one I haven't been able to test is the P3i side of things. I anticipate that when the new Bridge is fitted, I may need I relocate the P3I antenna. There aren't a lot of options in a Eurostar!