I had found a circuit on the web that had 9volts to vin, center pin to ground, but the signal pin was tapped off of the vin, had a resistor and an led that was contacted to the signal.
It made sense to me as a magnet was present, the sensor closed the switch and gave the voltage to the led a path to ground.
I placed an led on my solderless breadboard and connected it (with a 220 ohm resistor) to the signal (terminal 3) on the hall effect and it worked fine. However, the arduino went nuts when I placed the signal wire into an analog pin that was coded to turn on an led over a certain threshold.
Also, I've been reading and think I need a pullup resistor between signal and vin.
Also, I was originally using 5 volts, but when the magnet was present, I was seeing like 3 volts at the output. When magnet not present, I was seeing 1.8 volts. I was trying to widen my window, however it didn't seem to matter so I will most certainly change back to supplying with 5 volts.