This is correct that the differential should be parallel to the transmission 
but not inline.

In some vehicles,  check to see if the differential is parallel to the 
transmission while the wheels are on the ground.  When the wheels are jack up 
and unloaded, the differential may change angle.  This is cause if the vehicle 
has swing arms.  Also check to see how much the transmission yoke slides out of 
the transmission which should be kept to the original specifications. 

Roland 
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