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241DHD Trans Case output shaft

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Is it normal for a small amount of up/down movement .020"-.030", or is this early indications of output bearing/bushing failure. I've replaced the seal once at 65K miles and its leaking again after less then a year. Rest of the driveline is tight but I'm not real comfortable with the noticeable movement on the tcase output shaft and repeated seal failure. Your opinions are greatly appreciated.

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