It might help if you mentioned which cranks you're using, and even what chainline you hope to achieve.
its a Sugino RD2 42t, 16t freewheel. the frame states it has a 42mm chainline, but I don't really know what that means tbh.
Start here :) http://www.sheldonbrown.com/chainline.html
Frames don't have chainlines. Hubs and chainsets do.
@Joeboat started
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It might help if you mentioned which cranks you're using, and even what chainline you hope to achieve.