I read much about lateen sails and rigging the last days. Regarding yards inside or outside the shrouds it seems like both is viable and authentic. The mizzen lateens you see on the early european "exploration" vessels of Columbus are inside of the shrouds. There are pictures of european ships with lateens on main mast and foremast also inside the shrouds. But when you take a look at a dhow, for example, you see they are always sailed with the sail billowing out huge and way outside of the shrouds.
I read about how the yard and the rigging is handled on a dhow (not that I understood everything of it), and what workforce and distribution of it is necessary for this and that this may not have been possible on "western" or european navy and merchant ships during the age of sail with their form of employment crew/work distribution. So they may left the yards inside of the shrouds and of course used more square rigs.
Here is a website with articles about lateen sails and dhows. On the second link you can find a citation from a book which describes the maneuver of changing the tack (changing the course and, while doing so, taking the wind from the other side). It requires to loosen the shrouds, hauling in one end of the gigantic yard and put it around the mast by hand.
In thinking about trade routes in the parallel universe of Indian Ocean sail cargo it is important to understand that in spite of the desert, the heat, humidity and the vast areas, there was an active trade of considerable size and variety centuries before the discovery of oil or the building of the
www.southernwoodenboatsailing.com
But Freddie Mercury is not why I came to Zanzibar. Early childhood memories of holidays at Lamu on the Kenyan coast are filled with images of powerful Dhows plying their trade along the East African coast.
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Here is another link about dhows with many pictures and really informative article.
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I started to build the yards for my xebec. For the foremast and mainmast two toothpicks slapped together with glue and thread. For the mizzen a single toothpick is long enough
EDIT:
Here are some more pictures and fotos I found on the net which I use as reference:
Xebecs
and regarding lateen sails in general
tacking with yard outside of shrouds
Lateen on foremast outside, on mizzen inside shrouds.