What is the best way to align pulleys. I want to align from groove to groove. I have checked the distance from the face of the pully to the center of the groove and it varies quite a bit from pully to pully, so with a factory alignment tolerance of .005 in. I know using a stright edge from face to face will only get me close and when running my 302 at 8000 R's close is not going to make it.

If you are going to turn 8000 rpm, get an underdrive crank pulley to slow everything down or there is no way you are going to keep belts on. The alternator will explode! The first thing that will happen is the alternator fan blades will twist and rotate forward so much they will cut the belt.

Go to the deep groove pulleys for the water pump and alternator.
Use the straight edge across the crank pulley to get the others lined up for square, and front to rear.
I don't know anyone who has their pulleys within .005"
Good luck.

I have a 302 and when I bought the car from a friend of mine the alternator fan blades were actually bent I could hardly believe it! I still have it just to show people. Get the underdrive pullys.

I had a problem with belt throw on my 69 Camaro. I bought March underdrive pulleys and haven't had the belt thrown off since.