Quote:
Originally Posted by Dragoneye
You're both saying the same thing...sorta. He's correct about all except the location of the sensors. Like you said, they're not in the tire -- they're in the valve stem. Those sensors you're speaking about in the valve stems are the RFID 'tags' VJCamaro is talking about. Ever wonder why there were never any batteries to change in those sensors?
The rfid is manipulated by the tire pressure. So when the car sends out a signal to the tires, those rfid chips' return signal is based on how the pressures have manipulated them. Being a techy-geek, I think it's pretty neat! 
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Yeah, technically the valve stem is INSIDE of the tire.
This site has some good info about TPMS
http://www.aa1car.com/library/tire_monitors.htm.