I didn't feel any movement, but 1/32" isn't much. I did notice that the dust cover for the seal keeps backing out about 1/16" to 1/8" then stops. I can tap it back in, but it will back out again after driving it.

I doubt those bearings are easy to replace and I can't afford to have a major problem if I am traveling out of town. I doubt that I qualify for the extended warranty especially since I am not the original owner. The tranny functions fine except for the leak.

If I have to go with a new trans. which one should I go with. I would probably look for one with the longest warranty

I really appreciate the replies