This needs remedied as it will not hold the axle in position, 1/16 each side could be an 1/8 of movement total. Then you can start measuring. When I set up the rear of my Demon, with the springs relocated to frame, I leveled the car with the rear axle on jack stands no wheels. I dropped a plumb bob off the torsion bar anchors at the cross member. Marked the location on tape on the floor. Then did the same at the axle flange for each side. Measured from the marks at the torsion bar points to the points for the axles, on each side, then I crossed right front to left rear and left front to right rear. I did have to move the axle housing on the spring perches some to get the dimensions square. After measuring pinion angle and setting it I tacked the perches to housing. Pulled housing back out to finish welding the perches. When I had car aligned shop said it was square. Guess my point is you could follow the plumb bob stuff to see how true the axle is off the torsion bar crossmember. May take some time but might show you what is off.
