he means (I believe) perpindicular as in have the bolt which will be attaching the controls arms at the axle on the same center line as the axle tube itself.
imagine looking at the tube from the side (as if no knuckle) the center of the tube should be even with the center of the bolt... if you look at a stock XJ the lowers attach below the centerline of the axle tube... they drag on rocks, they need to be re-enforced and they transfer some of the axle locating forces onto the upper arms because they are so low.
mount the arms as far out on the tubes as you can, at the knuckles. on the frame side, put them under the frame (makes for good angles but can drag/hang on stuff), or inboard them a bit and tuck them up for a smooth belly... but you DON'T need to tri-angulate them like a 4-link.
as for the panhard bar, mount it high on the axle side, low on the frame side, and as long as possible. course if you have a draglink you'll want to match it's angles for the best setup (less/zero bumpsteer)
there are plenty of pics if need be, but don't over think it, it really is as simple as it seems... once you realize how easy it can be you get to understand it (atleast that's how it worked for me)