Axles are supposed to have that travel, so that the axle can change length as the suspension goes up and down. Axle in/out movement is NOT your problem....

__________________
Respectfully,
/s/
M. Dillon
'87 124.193 (300TD) "White Whale", ~392k miles, 3.5l IP fitted
'95 124.131 (E300) "Sapphire", 380k miles
'73 Balboa 20 "Sanctification"
Charleston SC