Can anyone provide some tips on adjusting front wheel bearing on W124 chassis and checking the play?

I think I over-tightened the first time (went to finger tight) cause the grease behind the spindle washer was blackened some... Problem is even finger tightened there was still some play... Based on a few forum posts I tightened to where I can turn the washer with a finger with a bit of force...

No matter what I do it seems theres a bit of play up and down. Side to side the wheels just turn so not sure how to check that. The whole front end suspension is very old (possibly original), but idk if that could contribute.

Any help is much appreciated!

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1995 W124 M104 E320 Wagon. 175k Miles and Counting