Its normal for a bit of sideways play at the compressor end so long as its not enough to for the compressor wheel to hit the housing. In operation oil pressure and rotation remove that play (bad description but hopefully you get the idea).
First things first, do you have a boost gauge fitted and if so are you getting any?
Does the engine have the boost compensator on the back of the injection pump? My understanding is that if that isn't seeing sufficient boost it will prevent the additional fuel required to create more boost.
If you don't have that compensator then I'd expect you'd be seeing lots of black smoke with throttle if you've got a boost problem.
Do you have an EGT gauge fitted?
On the Garrett turbo's I've played with, the exhaust housing comes off after you remove the bolts between the center housing and the exhaust housing. Been a while, but from memory there are a couple of semi-circular plates that the bolts go through that clamp it to the center housing. May require a slight tap to get it off but nothing major.
I put a bearing and seal kit in mine before fitting it and its still fine after around 50K Kms, but doesn't sound like that's your issue. If it IS turbo, it's sounding more like the turbine wheel has an issue.
Steve
1985 County - Isuzu 4bd1 with HX30W turbo, LT95, 255/85-16 KM2's
1988 120 with rust and potential
1999 300tdi 130 single cab - "stock as bro"
2003 D2a Td5 - the boss's daily drive
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