Three different procedures for adding Pd compounds to $SnO_2$ particles have been investigated. These processes are: (1) coprecipitation; (2) dried powder impregnation; and (3) calcined powder impregnation. The microstructures of $SnO_2$ particles have been analyzed by X-ray diffraction (XRD), Brunauer-Emmett-Teller (BET), scanning electron microscope (SEM) and X-ray photoelectron spectroscopy (XPS). In the coprecipitaion method, the process does not restrain the growth of $SnO_2$ particles and it forms huge agglomerates. In the dried powder impregnation method, the process restrains the growth of $SnO_2$ particles and the surfaces of the agglomerates have many minute pores. In the calcined powder impregnation method, the process restrains the growth of $SnO_2$ particles further and the agglomerates have a lot more minute pores. The sensitivity ($S=R_{air}/R_{gas}$) of the $SnO_2$ gas sensor made by the calcined powder impregnation process shows the highest value (S = 21.5 at 5350 ppm of $C_3H_8$) and the sensor also indicates the lowest operating temperature of around $410^{circ}C$. It is believed that the best result is caused by the plenty of minute pores at the surface of the microstructure and by the catalyst Pd that is dispersed at the surface rather than the inside of the agglomerate. Schematic models of Pd distribution in and on the three different $SnO_2$ particles are presented.