Alignment Tips?

I just dropped my engine into my '79 SN, now it's time to align it with the shaft. I've heard this is a pretty tedious job. Any tips or suggestions on how to do it?

Additionally when I pulled the back panel out of the boat to gain access to the fuel tank I noticed the locknut on what I think is the rudder packing was way loose. It was about 4 or 5 threads down from the bigger nut that I think loads the packing. Now that this is loose how should it be adjusted before I retighten the locknut?

Thanks!

As far as the rudder. You need to put the boat in the water and then tighten the rudder nut until you get 3-5 drips/Min. Do you leave the boat in thew water? If so set it at 10 drops /min and then it will swell some over the first 24 hours. This is how I set mine Someothers also just tighten it down iuntil it stops dripping. How old is the packing? Now might be a great time to change it.