I found the factory tool that should take the guessing out of it.
Thanks for the help!
In case you do not have the manual..
When the tool is secure over the drive clutch the long flat part DOES NOT sit flat against the driven!! (this is true if the motors mounted on its rubber mounts. IF you mount the motor and tranny SOLID on steel then making it true to the guage will be what you need as no flex in the rubber mounts)
It should kiss the driven on the side AWAYS from the motor and on the side of the driven NEAREST the motor is where the gap needs to be! (Why they do not build this so it fits flat with the right angle?? To much work for them I guess?)
The gap will be between the tools edge and the DRIVEN clutchs side its near.
My 400 Polaris scramblers call for 1/8th inch gap between the driven clutch and the tool. The one you have will be close.
This gap is usually done by moving the engine. If your motor is not in the stock position you will need to account for it.
Or as mentioned on "That other site" mount the motor and tranny solid on steel and then it can be dead straight.
They do not mount the motor and tranny soild on Sleds due to the way the sleds chaincase is mounted solid to the chassis where its lower shaft goes thru to drive the track. So the motor alone is mounted loose on rubber mounts and it's torque must be accounted for.
On a machine like the Honda Pilot the motor and tranny are hooked together hard with steel so the belts is held true no matter what.
But on the Pilot the rear CV's just deal with the vibration. so no big deal. If you are doing similiar to a Pilot with CV's on a tranny like the Pilot then hooking them together might be a good way to go.
If it's different then your results may vary!
Side note. If you go to "That other site" and look at ATVnuts post in your thread with the picture of the manual page (thats only about half there) you can see its got a big black arrow on it. That arrow is pointing to where the gap will be measured between the alignment tool and the drive clutch.