Did my homework and used the search so I can fab my mount for pinion/trans angles. Everything looked liked it should be trans 3deg down and rear 2-3 up...or close to that.
Then I read this! Now I'm scratching my head! What's right??

 

I have set my engine/trans down 3 deg, pinnion up 3 deg. Just as the picture in the second from top.

I am running the parallel leaf springs on the rear.

 

They are trying to account for the rear rotation of the diff under power. You want the trans and diff shaft parrallel to each other when under load.

Kind of a crappy picture. I would ignore it. Here is a better link

http://www.4crawler.com/4x4/CheapTri...line-101.shtml

Don't forget the side to side alignment. Just as important as the up and down

http://forums.hybridz.org/showthread.php?t=109413

 

As pop n wood said they are trying to account for the upward rotation of the pinion.

If your car is a cruiser and your looking for a smooth vibration free ride you should set the pinion upward at 2-3 deg (opposite of the transmission)

If you are drag racing you should point the transmission directly at the pinion and then set the pinion downward with enough angle that as you launch the car the pinion will rotate up until it lines up exactly with the transmission. This puts extra wear on the u-joints and stress since the pinion is not lined up during regular driving, but it results in quicker 1/4 mile times because the u-joints are at zero deflection during the .25 and therefore are not causing any friction so more power makes it to the tires.

 

Whew! Thought I was going crazy. Engine=down Pinion=up No more than 3 deg. Balance eachother out as much as possible. Sounds good. Thanks guys!