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Just looked at my output shaft and found out that the seal was gone. now I am putting it together and try to get the end float of the shaft. I have 2 shims in there and have lots of play, now what do I have to do to reduce the play take shims out or put shims in between speedo housing and Transfer Case
 

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First remove all the shims. Lightly tap the outer bearing race inward untill you have no play in the shaft. Now bolt on the speedo housing without any shims. Do not tighten it yet as this will squeeze the bearing too tight causing resistance in the turning of the shaft. Just a good finger tight on the nuts. Now use a feeler gauge to measure the gap between the speedo housing and the transfer box (where the shims were). Remove the speedo housing and fit shims to the same measurement you got with the feeler gauge and bolt on the speedo housing tightening to the recommended torque.
 
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