Ok, let me try.
First i have to tell you that i am not using a drop-away rest myself.

You said: 'the rest comes all the way up about two inches befor efull draw.'
As far as i know that is good.
It means the rest will stay up the first 2 inches when you release and is well down before your arrow centre and vanes will pass by.

To setup a rest i allways work from two basic positions.
I use a rubberband between the limbbolts to centre the arrow trough the mid of the bow, and i use a wage to place the arrow exact 90 degrees behind the string.
Put the bow in a clamp or workmate and use the wage to set the string up 100% vertical. Than nock the arrow and use the wage to put the arrow 100% horizontal.

Dont put to much attention to papertears.
I have seen a high speed movie about arrow comming from release to full flight and after this i prefer strait flying, clearance and tight groups above papertears.
For strait flying i mean no change in left or right when i increase or decrease distance.