So at ride height the rack and tie rods should be straight across?

The ball and socket is very close to if not in line with the lower control arm pivot




Yes you want the rack in line/level with the outer
tie rod ends. The closer you can get the inner tie rod
ball and socket to the height and in/out distance of
the inner lower control arn pivot the better, it can
be forward but the up/down and in/out are important