[Bruce Edwards]

Sure that will work. The idea is to get a good look at the angle from the trans to the pinion. You may also want to be sure the drive shaft is not to long. You should see some of the slip yoke bearing surface hanging out the rear of the trans. Depending on your rear end set up it can be as little as an inch if your rear end is solidly mounted like a Vette or Jag and more than an inch for a standard 4 bar or leaf spring style.
You want to be sure as the rear end winds up that it is not making the drive shaft bottom on the output shaft. That will give you a banging noise till the car starts rolling and the drive shaft levels back out. You may also hear it if you hit a speed bump to fast.
Just another thing to check.