what degree of angle should the front axle be tilted up towards the t case for proper steering geometry?
These are two seperate, but inter-related, issues. The *pinion angle* is how much the pinion flange is rotated from vertical. If you are running a CV shaft then ideally you want the pinion pointing directly at the transfer case. If you are running with a single u-joint at each end you want the pinion flange and the transfer case flanges to be on parallel planes so that the u-joints cancel out vibration as they speed up and slow down.
As for the proper *steering geometry*, this is where caster comes into play. The caster angle is how far the steering knuckles are rotated from vertical. Stock Toyota solid axles come with around 2 degrees of caster, not much at all. A little more caster will help the vehicle track straight on the street, you certainly would not want less than 2 degrees. With more springs that move the center pin forward, you gain more caster because instead of the axle being centered at the bottom of the springs arch, it is located on the sloped spring where it starts upwards towards the front spring hanger. This helps with the caster.
Both of these issues are also affected by the relation between the spring hanger drop and shackle length, as mentioned earlier. The problem is, as you gain more caster the pinion is rotated DOWN. If you rotate the pinion back up towards the transfer case, you lose caster. Running a high pinion front third member and/or dual cases will lessen the angle between the transfer case and the front axle, however I really think that
rotating the knuckles is the best option. I rarely here of people doing this on Toyota axles, but it is common on Dana axle swaps.