There's a few parameters for driveline setup. Yes, generally you want the angle of the pinion within 1 (or 1.5, cant remember) degree of the angle of the transfer case. For a u-joint, you also don't want to exceed 3 degrees overall angle. For short wheel base vehicles being lifted, it's almost impossible to meet both those requirements, one has to be sacrificed for the other.
I prefer to err on the 3 degree requirement to prevent pinion seal and bearing wear. In Mark's case it eliminated noise that the extra load was causing as well.
Unless you're having an issue with bearing noise or driveline vibes, i wouldnt worry about this until your other issues are figured out.
I wish i was closer so I could help troubleshoot your traction control issues. Everyone pretty much advised on what to check first already... the connections etc. Does your shop buddy have a good scanner? If so, he should be able to connect it and read each WSS while you're driving. When driving straight they should all read the same, it's a quick way to see if ones out of spec without pulling things apart.
I'll see if I can find an ohm value for the WSS... then you can at least probe each one to see if the sensor is bad without needing fancy equipment (except for a basic DVOM).