57 chevy truck on tow dolly, & rear axle ?

[sweet70beast]

If it is an automatic the drive shaft needs to be taken out no mater what. With a stick you can pull it in neutral with the drive shaft installed however, you have the trans spinning too. It saves wear and tear possible internal damage on a marginal trans. If you know the trans is in good shape it won't hurt to leave the drive shaft in for short trips but, I would take it out for long trips for the peace of mind.
As I said an automatic will burn up if the drive shaft is left hooked up. The fluid flows when the engine is running but if it isn't (like when towing) there is no fluid flow and the friction will do tons of damage. With a stick the gears fling the oil everywhere whether the engine is running or it is being towed.