That diff is def worn

I removed the diff cover prior to removing the drive half shaft so i could see how much play there is in the diff.

A lot more than i expected!! …. although I guess that is an accumulation of the wear in all 4 thrust washers.

Hopefully new washers will improve but I don’t think with that much play will totally cure it.

Updated 11/01/2020:-

According to Paul Hunt on his mgb-stuff website you can see the top small gear moving up and down significantly. These have a domed copper washer behind them, and the larger gears on the half-shafts have fibre washers behind them. The copper washers are only thin to begin with, so that amount of movement can only come from extreme wear in the fibre washers which has allowed the gears to move away from each other, lessening the engagement of the teeth.