Hi Pete
there shouldn't be any discernible movement. From your description it seems that the diff pinion is moving in its bearing, or the bearing itself is moving in the diff housing, or the yoke is moving on the pinion shaft.
If you remove the track rod, drain the diff oil, remove the brakes and hub assembly and pull the axles, remove the front propeller shaft, then undo the 10 bolts around the diff casing... you can pull out the diff.
I'd then take it to a diff specialist and get them to fit a new bearing/yoke...
I've never done this repair but it seems feasible for DIY as far as remove/replace if someone with the right tools can do the yoke/bearing repair...
Good luck with it
MY99 RR P38 HSE 4.6 (Thor) gone (to Tasmania)
2020 Subaru Impreza S ('SWMBO's Express' )
2023 Ineos Grenadier Trialmaster (diesel)
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