ive got to disagree again. if your pinion is higher, you want to point it down. you cant go off of what you have at your tranny, without measuring all of your working angles. if you have 3.5* down at the tranny, and now your DS points up towards the rear, you now have a WA of greater than 3.5*. check the specs on your u-joints, but most want an angle as close to 1* as possible (without going below), and no more than .5* difference btwn WA's.
for YEARS!!! its been common to match the pinion to the tranny ( \-\ ), but especially with your pinion being higher, you need to be like this ( \_/ ).
you could also raise the rear of you tranny to make its angle less. this would also lower your WA's.
check out this site. it lists the commonly accepted driveline configurations, and (third down) lists your up, down, up configuration as one of the unacceptable.
http://www.vibratesoftware.com/html_...igurations.htm
Tim