ECT Sensor on air cooled engine

On an air cooled engine would the ECT sensor be placed in the oil and be setup with similar values as coolant temp and remain as 'ECT' and 'coolant temperature correction' function in the ecu?

You can use either a fluid temp sensor in the oil, or a cylinder head temp (that's what Porsche did for the last 20 years of air cooled engines). MoTeC used to call the channel "Engine Temp" which is an excellent generic name, but with the M1, they are using Engine Coolant Temp -- and I configure the Porsche Cylinder head temp sensors and change the ranges appropriately.