I'm swapping in a chevy 350 into my 87 YJ. Question is, how do I make sure the tcase output yoke is aligned with the rear diff? Is there any room for error? Is there any special tools or advice that anyone can help me with? Thanks.

room for error???? U-Joint???? I would assume if the engine is perpendicular to the axle it will be inline or do you mean the offset of the t-case and the pinion???

I guess what I'm looking for is information on how to make sure that the drivetrain is in the location that it should be. I know that the rule of thumb for a chevy swap into a Jeep is 1"+ offset to the drivers side, but what I'm not sure is, how precisely do you know if the drivetrain is located where it should be. I would assume that the output yoke on the transfer case would need to be aligned almost perfectly with the rear diff.