I don't have a decent drawing package on this computer, Paint doesn't cut it, so I will try to explain again.
The engine is behind the prop-pod, with its drive shaft emerging from the front. This driveshaft is horizontal when viewed from the side and orientated parallel to the fore/aft axis of the aircraft. At the end of this shaft I would place a spur gear. This spur gear meshes with a "translation gear" (my name) with its axis at 90° to the driveshaft. This plane of this axis is horizontal when viewed from the front of the aircraft, so the gear looks like it is standing upright. by design, it is the same axis you want the prop-pods to rotate on.
To transfer power from the second gear to the propeller shaft axis, you use another spur gear. Now, if you think about it, if the prop-pod rotation axis coincides with the translation gear axis, the propeller shaft spur can "roll around" on that gear, allowing the propeller shaft axis to move from horizontal to the vertical. No fancy joints are required, its all done by the gears. The prop-pod can be rotated using gears attached to the engine pod which is fixed to the wing tips.