Actually, that sounds about right. The shaft that comes out of the front diff has a single roller bearing. So untill it splines with the pinion shaft(in 4x4), it will be a little sloppy. If that bearing is bad, most likely you will have an oil leak. If it isn't leaking, I wouldn't mess with it. Won't hurt anything. It isn't a big job antway. On my 650, I had to move the front diff forward to un-spline the driveshaft from the engine which was a pain, but I think the 500 driveshaft bolts to the engine. If that's the case, the hardest part is taking off the actuator. Which isn't that hard. Good luck dude.