Is this a normal amount of gear movement?

Looks pretty normal to me. Of course feeling it is better than watching it.




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Your car is ruined. I'll give you $8 for it, if it has good floor mats.

Seriously, what they said /\...looks pretty normal.
 
Thanks for the responses. Going to replace the pinion seal and move on.



Personally I would also order a solid spacer kit in lieu of the crush washer. If you ever need to go back in it makes it a breeze.


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