Forwards! That way when it comes free and hurtles towards the truck at 100mph you stop it with the back window instead of your face.
I would pull forward.
Also, if you have an old wheel or perhaps your spare tire, you can lay the strap over the tire and then tie it to what ever you are pulling out. This lifts and pulls at the same time. much better than pulling sideways.
a couple of examples:
https://www.youtube.com/watch?v=gq_Gb46eXr4
https://www.youtube.com/watch?v=eHC-AA1xj4w
Is there any damage that can occur to the tranny when you are pulling with the vehicle in park ? As opposed to pulling in neutral with the brakes on. I know on the grass it will just slide but on pavement where the tires can really get some traction.
Is there a preferred direction to pull from for durability's sake?
Reverse gear vs 4-LO + rear diff?
Pulling out tree stumps of any size you can forget about it unless you have a tank.
I pulled out some rather large shrub stumps about 2-3' in diameter with my ZJ. At first, it was a no go and I doubt my 4runner would have done any better. The trick was to dig around the base of the stump to expose the major roots. Then use a sawzall with a really long blade and cut through all of the big roots. Once I did this, it yanked them out just fine in 4lo.
We've even tried using a rather large John Deere tractor up at our hunting land to dig up/pull out tree stumps and it doesn't even budge them.
+1 and I've pulled out a fair few. Did this Oak tree not too long ago. 4lo + Diesel = Effortless!
https://www.youtube.com/watch?v=RXFZYaEhy7k