I noticed that my drives are toed out. Should they be neutral? They're out by about a half inch if I measure at the front of the drive and at the prop shaft.

A 1/2" sounds like too much to me. I'm not 100% sure....... but if your props spin out, your drives should toe in. If your drives spin in, your drives should toe out. Which means that the distance between the prop shafts is more than the distance between the noses of the drives, level with the prop shaft. The toe in or out should be from 1/8" to 1/4".

They Should Be Somewhere Between 1/16-1/8 Out Regardless Of The Prop Rotation.

I stand corrected....... Thanks Reggie

is that true for all boats? i always thought it was spin out, toe in.. and spin in, toe out

Everything I Have Ran From Fountains,cigarettes,mtis & Skater It's Always This Way.

So the noses should be slightly closer than the prop shafts?

Yes Sir.

would'nt that be toe "in" if you place your feet with your toes closer then your heels... isn't that how they came up with the name?
sooo... toe in 1/8 would be the optimal set up

It Depends On How You Look At It. Toed In 1/16-1/8 In The Front Or Toed Out In The Back.