Ideally you want it were the red lines are. The anticavitation plate on my suxuki is right at the bottom of the keel of the bracket....just like if you had it mounted to the transomon the boat. Mount the bracket so you have the anticavitation plate 1 inch up for every foot of set back. Thats the starting point. You may have to raise the engine even more so I would make sure that once you mount the engine you have room to move it up or down and still have the anticavitation close to were the red lines are. But what the hell do I know I'm just a veterinarian. Maybe someone who knows what they are doing could chime in.
Gotta get to work.
strick