I think it would be awesome if it was the diff bearing, cause im in the process of working on my front diff and i will easily remember how to remove everything, i will check this out, im pretty sure if i have it in gear that there is no movement, but i will check again.  Does it matter if its in gear???

No it shouldn't matter if its in gear as along as the pressure from rolling weight is held by the e-brake.
The nut that holds the flange to the diff and seats the crush washer, its torc spec is 350ft lbs. After miles and miles of resistance (whining noises, stresses) the nut backs out. The more it backs out the more room for movement as the stress increases with more energy to back out a nut that is losing its grip. I was unable to find out how far my nut had backed out because the rear-end was on the work bench. I used a 350lb impact wrench which had no problems getting it off.

I purchased the Samurai with the rear-end condition. I have no idea how many total miles the problem occurred for before I bought it but I put 7000 miles on it before it ker-pooped. Luckily I was going 30 miles an hour and was able to prolong its death less than a mile to my house.

I did check the driveshaft though, and i didn't really notice much movement at all.  I did however check the driveshaft from the tranny to the t-case and that did wiggle on the t-case side.

I also noticed alot of oil leaking from t case, so i am gonna start there, im planning on buying a fully rebuilt t case w/ lower gears and HD output shaft from TT.  Anyone had any experience with the rebuilt tranny and or t case?

I rebuilt both my transmission and t-case but to stock gears. I had no prior transmission or transfer case knowledge I just took my time and kept everything in a HIGHLY organized fashion, rebuilding the diff was much faster but required a bit more brains and tools.

Just to make sure... Its not a U joint that needs replaced?
While purchasing the pinion and ring gear from petroworks I was told that its best to leave the pinion and ring gears stock while making your gear adjustment in the t-case. I didn't commit anything to real memory with his numbers but I believe he had a t-case gear ratio that gave you 114% increase in low range with roughly an 8% loss in high range; this was with 30 inch tires compared to stock gears with the same tire. It was like 900 bucks complete. I've seen just the gears on eBay if you were on a budget.

Before you make a final decision with your t-case and diff issues I would take a long look at doing the Toyota axle swap.

Before you make a final decision with your t-case and diff issues I would take a long look at doing the Toyota axle swap.

Honestly i don't have any intentions of an axle swap, this is my hunting vehicle plus around town, i really just want this to be reliable and capable of going offroad into those hard to reach places.