In many cases, it is impractical to measure the vibrations directly at or close to their source. It is a common practice to measure the vibration at a location far from the source for condition monitoring purposes. The vibration measured in this way inevitably has high distortions from the vibrations due to the effect of the attenuation of signal paths and the interference from other sources. The suppression of the distortions is a key issue for the remote measurements based condition monitoring. In this paper, the influences of transducer locations are investigated on a typical gearbox transmission system for the detection of the faults induced to the gearbox. Several signal processing techniques’ analysis results show that the attenuation and interference cause high influences on the gear transmission signals. However, time synchronous average (TSA) is very effective to detect the local faults induced to the gear system.