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the output shaft in you TC should NOT move. If it does then you might want to think about checking your output bearing. Pictures would help a lot!
I make more money that you, my wife is hotter than yours, my thingy is bigger than yours
i just went and got the 30mm socket to tighten the nut so hopefully that will help if not i will replace the seal and rear bearing and go from there, the t-case still shift fine and tight, no grinding of any sorts so i doubt a complete rebuild is needed but then again you never know what i might find when i take the rear cover off.
I would check the rear shaft in the t-case for run out, it could be bent.
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