Each sensor requires different types of testing approaches. Use of the meter will vary with the particular requirements of each sensor.
The meter you've described is capable of multiple measurements. It can measure current flow, voltage level, and resistance. The ac and dc mode apply only to the voltage and current measurements. For the most part, only the dc mode will be useful when testing vehicle sensors.
The "COM" connection on your meter is normally where you would plug the black wire. "COM" stands for common, and it is always used in conjuction with one of the other connectors.
Some meters have separate connectors used with the red wire depending on the measurement desired. Often the voltage and resistance functions use one connector while current measurements require that the red probe is moved to a different connector. Also, sometimes there is a third connector for an extended measurement range. The manual that came with your meter should provide a clear explaination for the use of each connector.
It sounds as if you might need to work on getting a better understanding of basic electricity, particularly in relation to your automobile.
You might find this website helpful in offering some of those fundementals. I'd encourage you to look for additional resources to help get a better understanding of electricity.
http://www.familycar.com/classroom/Autoshop101.htm