Jack plate on a 'toon would be pretty cool, but I don't think I've ever seen one.
All the way down is a pretty safe place to install an engine. Works fine for the majority of 'toon owners, most of whom won't give what they are getting for top speed or RPM a second thought.
For those that do give a darn, there are no hard fast rules. The engine pod can be anywhere in a several inch range when compared to the bottom of the 'toons. I think it's a safe bet you'll run into issues with the cavitation plate located above the bottom of the pod. After that though, with the plate located even with or below the bottom of the pod, the higher you can get it to run without cavitating the better! A jack plate would let you experiment with that adjustment pretty easily, but most of us mere mortals will have to get the wrenches out.
If located too high, the engine will cavitate easily, especially in a hard turn.
I would do my testing while lightly loaded, trying to keep that load the same from test to test to minimize variables.