I was replacing the output shaft seal in my 700-R4 and watched the shaft move when I was prying out the seal. I checked it out and there is about 1-2/16ths of play in the shaft. Is there a bad bearing or something in there or is it supposed to do that?? Is this the cause of the seal failure or is it the driveshaft out of balance?

Thanx

 

You mean the output shaft has movement? Thats normal when the driveshaft is not installed. Its the driveshaft yoke riding on the tailhousing bushing that keeps it from moving. however, if that bushing is worn out, then yes, that will cause the seal to leak.