Here is a Baerwald arc protractor for Thorens tables. This should be the absolutely best and easiest way to align your cartridge:
http://www.vinylengine.com/cartridge-alignment-protractors.shtml (scroll to the very bottom for your protractor, I tried to link the PDF file directly but it would not allow me)
I'm not sure what tonearm you have on your TD160, but chances are it is stock. If you flip over the second page of the above PDF it lists the tonearms that are compatible with the protractor. It needs to have a mounting distance of exactly 215.6mm to work with the cartridge. Also on the back are excellent if slightly off-english instructions for using the protractor. Basically with this you just make sure the needle runs consistently from X to X on the arc line without deviation, and this will adjust your overhang. Then place the needle on the little grid there, and align the cartridge body with the grid lines (this is assuming the cantilever is parallel with the sides of the cartridge; if not, compensate accordingly). After adjusting within the grid once again check the overhang.
You'll also want to get the tracking force right. Without a tool like the Shure Stylus Force Gauge, you'll have to adjust this by eye. I'm not exactly sure how your tonearm is setup, but it should have a counterweight on the back of the tonearm. Turn this in either direction until the tonearm floats freely and evenly in the air. The "evenly" part is what is the pain in the ass to measure with your eye, which is why a stylus force gauge comes in handy . Then dial in this point at 0 on your indicator there, and set your VTF from there according to the cartridge manufacturers recommended limits (typically between 1.25g and 2.0g).
Of course during this whole process you should have your anti-skate set at zero. Some tables (VPI) don't even have antiskate. Luckily the TD160 appears to be a popular table, so you should be able to look up this kind of stuff live on the infernet: http://www.theanalogdept.com/thorens_td_160_dept_.htm. Looks like lots of good stuff there. On my technics the manual suggest setting the anti-skate to the same number as the tracking force. I think this is generally the case with most tables.
Final adjustment is tonearm height. Typically height should be adjusted so that the cartridge body runs parallel to the surface of a record.
Doing all this you should notice a significant improvement in sound! Let us know how it works out.
mod edit - fixed links