Are there specific criteria regarding where they are placed?
Yes, by distance. HABD sites are located so that trains pass over one within a defined distance. Just don't ask me for the number!
Are they integrated with the signalling system?
It depends on the signalling system, the type of HABD equipment and the requirements at the time. The HABD equipment itself is not classed as signalling equipment. Although it's the S&T who install, maintain and fault find it.
The following is former BR WR practice for Panel signal boxes (PSBs). Modems are provided to transmit the data from the site equipment (which is not connected to the signalling system at all) to the PSB. At the PSB in the equipment room, the receiving modem is located (typically in a 19 inch rack cabinet) along with any required power supply equipment (which is powered from the signalling 110V AC power system). The modem output feeds along a cable to the HABD equipment cabinet (normally located on the signal box operating floor). The HABD equipment has an alarm output. This goes back to the signalling equipment room where it goes into an interface box (that contains various relays) or to individual relays.
When the HABD equipment detects a hot axle or a fault is detected (loss of incoming modem signal, integrity error etc.) It signals to the appropriate relay. this is wired as a latch circuit. This then causes a sounder to 'alarm' on the signallers panel. Often a light illuminates as well. The signaller has to push the button corresponding with the alarm/light to acknowledge the alarm. Some older systems also take an output from the relevant track circuit (at the signal box) and feed this to the HABD equipment to reset the axle counter signal box equipment as a train approaches.
Are they effective with inside frame bogies, where the axle box is behind the wheel?
I don't know much about rolling stock. So this may not answer your question. But the HABD sensor (called the scanner) is located on the four foot side of the rail (one for each rail) and scans the rear of the axle box (at an angle) as the train passes over it (assuming the train is travelling in the normal direction of travel). The scanner is not aimed at the wheel and is not obstructed by the wheel. There is a standard that defines the alignment and field of view of the scanner. The scanner itself is an infrared sensor which only receives radiated IR light. Separate wheel flange sensors tell the HABD equipment when an axle should be in view so that sunlight and other heat sources can be ignored.
For rolling stock where the lineside equipment is not suitable, that stock should have it's own axle box sensors.