A modular waveguide assembly for use in a position sensor promotes efficient manufacturing, and can be tested and handled separately from the electronics module of the sensor. The waveguide assembly includes a channel having an opening extending along its length, a waveguide located within the channel, a conductor located within the channel, and a mode converter, such as a coil, located within the channel and positioned to generate an electrical signal from a signal traveling along the waveguide. A damping material can be inserted into the channel opening and around a portion of the waveguide such that the material adheres to the waveguide. Preferably, the damping material is at least initially partially flowable, and is then cured. A support sleeve for locating the waveguide can also be included in the assembly, and includes an elongated tubular member comprising an integral piece of flexible material and a plurality of constrictions spaced along its length for locating the waveguide and protecting it from shock and vibration. The assembly can also include a support element for connecting the coil to the electronics module of the sensor. The element can include terminals electrically connected to the coil ends and a bore for receiving the waveguide and conductor. In addition, the waveguide assembly can be pre-calibrated for use with any electronics module by connecting a gain unit, such as a resistor, to the assembly. The gain unit is selected according to the characteristics of the waveguide, such as its length and/or magnetostrictive sensitivity, and can be easily connected to the electronics module for control of the amplification circuitry in the module.