So the setup posted in the picture above worked, it for sure had some lost resolution from when I had it on the driveshaft with my 8.75. Going from 8 pickup points on the driveshaft to 5 on the wheel did make a noticeable difference in the logs. It also had a small bump in the log I couldn't get out, likely because the wheel studs are not machined perfect and one of them was probably a little out of range of the sensor.
It was driving me crazy so I bought a kit from Motion RaceWorks, they have a combo of Strange Yoke with a tone ring, sensor, and sensor bracket. I already have a few of the sensor they use so they dropped that off the price and added their black friday discount a week early.
https://www.motionraceworks.com/products...rol-for-dana-60The 16 points of resolution on the driveshaft yoke should be super smooth.