np208 loose slip yoke
 

I noticed a small amount of up and down play in my slip yoke of my 208, so I pulled the tailhousing and replaced the bearing/bushing/seal that's in there. Put it all back together and still a small amount a play. Found the U-joint to be bad, so I replaced that and still I have a loose slip yoke.

Could it be the slip part itself is worn down and making it loose?

Re: np208 loose slip yoke
 

Yes , the slip on the shaft can wear down from age and lack of lube.