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I have never done it but have seen it done in a boatyard. They used a laser to set it up. You want the shaft alignment as perfect as possible I know that much. If you have to force it that much it is too far out and you will feel an RPM based vibration and excess wear on the cutlass.
I read the nor-east post, it sounds like he has been down this road more than once.
Best of luck with this job.
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