mine run inside the frame - IIRC, looked like the original tabs were used
and X2 on the coils below the master - for illustration:
This looks like mine currently. I'd blame it on a PO, but I did the conversion back in 1996. It looks like the rigid to flex line attachment used to be at the motor mount location, now it's above the front axle... I believe I moved it forward to clear the mount. It comes down from the master, has a couple coils, slopes downwards over the steering box and then attaches to the inside of the frame above the center of the axle.
I wouldn't run it on the outside. I've had mufflers and fenders crushed by sticks that've bounced up after driving over them.
In the future I plan to either run it over to the passenger side like on newer 40s, or once the steering box is removed (Scout II) run it down the top of the frame on the drivers side and connect up to the flex line where it is. A lot depends on timing... I've got a 77 housing that I may clean up, install 3.70 gears, paint, swap in, and add disk knuckles... That'd have me half way to having the line moved across.
For those paying attention and going, "huh?", its a 45 housing and in 77, they had massive oversized drums... Not discs. Since I've got 4 wheel discs, I'll be keeping them. Family, health, life, etc. have got in the way of completing the switch to 3.70 gears. It sucks having mismatched 3rds, but what can I do.