Google suggests it near the <head> tag so it means the Analytics code will always load and be counted even before the rest of your pages loads. In an ideal world this would be best for you and Google. But in the real world sometimes Google's codes don't load so fast and putting it here would prevent the rest of your page from being displayed until it finishes loading which can cause you to annoy users.
From experience with vBulletin and Google I, and I think most, admins have come to the conclusion it's best in the footer so the page can load before the Analytics code. If a couple of visitors aren't counted because they change pages too fast, so be it.
It definitely works in the footer where this mod puts it, it's where I've always had it and have installed/tested it on numerous forums and used Google's own tools to confirm the code is active and deployed.
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