I was looking for pictures on my hard drive to answer a question about a problem with the fit of a new (reproduction) rear brake and found some pictures that may be of interest.
For aligning the rear wheel of my 101 (and all other Indian models I have owned), I have always aligned the rear sprocket with the transmission drive sprocket using a laser. This is based on the assumption that the transmission is squarely set in the frame.
When the laser beam strikes all chain links at the same spot along the chain, the two sprockets are perfectlyy aligned, and the rear wheel would be aligned with the frame, and onwards to the forks and front wheel.
The laser is placed on a (very cleaned!) flat area of the rear sprocket.
The laser I have alwys used (on my second version of it now) is shown.
Pictures how this being done on a 101.
Bob