No the top pic that says "Correct pinion angle" is correct. You want the trans and pinion centerline level at the same angle but paralell each other like the top pic as they should not be the same line. Once you get both the trans and pinion at a level 0 degree angle then you nose the pinion down the amount of downward pinion angle you want (2 to 7) so that way when you hit the gas and the diff wraps upward you will have both lines basically about paralell to each other as in the top pic that says Correct pinion angle. They build the cars with the rear lower then the trans and you need some angle in the driveshaft to make the U-joints work and stay lubed. If the shaft was dead straight the U-joints would not work and they would not keep lubing. Ron