The output shaft will be much harder to turn in one direction verses the other. Try to use a pair of channel locks to turn it. If you can not turn it in both directions I would suspect that the band is way to tight.

As for the position of the output shaft. This may not be a problem. If you have a worn case bushing it might hang a bit. Also transmission end play might effect this. Keep in mind that the yoke and the extension housing bushing are what centers it in the housing. Good luck with your project. Vince