True there is a limit to how high you can point the pinnion, I am not sure what the limit is as I don't run that much lift.
With the CV at the Xfer case you point the pinnion straight at the Xfer yoke.
I actually have my pinnion 3deg down (from straight at the xfer yoke) to help compensate for axle wrap with my 454 torque. If I ever get a anti-wrap bar I may move it up 3deg but that is not much more clearance so...
Non CV - bascially you set the angle finder on the xfer case yoke and take the reading, like 11 deg. then you rotate your pinion until it too reads 11deg.
You want to do this (CV or NonCV) with the weight of the truck on the springs so you get a true reading/placement. Then weld up yer perches.

