you need a new needle bearing in the wheel bearing. you can find just the needle bearing, but its a cluster fk to change, let alone get the actual correct bearing.
the easiest option, being your is manual lock outs, is to just get a new wheel bearing. should be about $425 from ford.
you will probably need a new stub shaft on the end of your axle. when you let them get that much play, the needle bearing has already run dry, and started chewing on the axle shaft. ford will not sell just the stub shaft, they make you buy both halves. $300. or you can call these guys,
http://www.wellerauto.com/index.html and they got me a new stub shaft shipped for $125
then comes the lock out. yours might be fine. when the axle hangs that low, its not spinning straight in the lock out. that's something you will need to determine for yourself. if the lock out is bad, and you put a new wheel bearing assembly on, it will chit that little needle bearing in no time, defeating the purpose of putting on a new wheel bearing. ford sells lockouts for around $200.
then you need that big a$$ seal, and you ABSOLUTELY NEED THE SPECIAL TOOL TO INSTALL THAT SEAL. putting the seal on the shaft is do-able without the tool, but installing the axle shaft into the axle, that tool sets the depth. VERY important. that big seal is about $50, and while your there you should get the yellow o-ring that goes around the wheel bearing. that's only like $5.
in theory, you do not need to remove the seal, to replace the wheel bearing assembly. and therefore, you will not need the tool. BUT. if you have that much play, the seal is probably shot.
there is no problem driving it further, as everything that could take a chit, has already taken a chit. there's nothing new that can get messed up, by continuing driving it.
you should be hearing a clunk when you drive, and you should also hear a growl when you drive. the clunk is the play you did by hand in your video, and the growl is the locking cogs in the lockout.
as for it getting stable, i would bet the u-joint in that axle is shot, and freezing. been there, done all this. when you put a new stub shaft on, put a new u-joint in. whats another $15?
13/16 socket to get the tires off,
remove caliper and brake rotor, i forgot the sizes on those,
allowing you have stock lockout, it will take a pair of needle nose pliers to get the lock out off.
turn the wheel all the way to one side, and a 1/2 drive 13/16, 6 pt, NON-IMPACT shallow, with a short extension, will get two of the 4 nuts off that hold the wheel bearing on, turn the wheels all the way the other way, and you can get the other two nuts off. there on the back side, right next to the u-joint. there are 4 studs that go on the wheel bearing, and slide through the spindle being held on by those 4 nuts your taking off now. if you look in there, you will see what i'm talking about.
i use that set up, as i can juuuust fit my impact in there to use that. otherwise you would have to use......manual tools.
gently tap on the backside of the studs that hold the tires on, and you can walk the wheel bearing assembly off. if gently fails to walk off, get a little more aggressive, or a slightly bigger hammer.
if thats as far as your going to take it, it should take about an hour to replace the wheel bearing, and be driving back down the road. i can do it in about 20 mins, but i have done it a time or two.
that should get you started.
