We have an Arduino Uno board and just bought this current sensor. We are new to arduino and need help on how to connect this to our board and for it to give us a reading.
This is your current sensor : http://www.phidgets.com/products.php?product_id=3500
It seems to have a DC output of 0...5V. That makes it very simple to use. It is ment to measure mains (230V or 115V) AC currents, like the current a washing machine is using. That page at phidgets.com has a picture that show that the wire is going through the big hole. You can wind the wire a few times around it to reduce the maximum measured current, as is mentioned in the text.
The output is simply the (-) and (+) terminal. Since the output can be 6.5V, it is too much for the Arduino. So I suggest to connect the (-) output to Arduino GND, and the (+) output to a protection resistor of 1k or 4k7 and that to an analog input of the Arduino.