Well, the nut has loosened off!!
I didn't have a torque wrench that reads inch pounds that low, it wasn't very stiff either, but all I did was put it back to where it was, and go past 1/8".
I think the bearing should be replaced.
When I went out to the road, it sounded way more horrible for 8 miles. I made a rather brisk left and suddenly the noise went away. For 30 miles it was quiet as a mouse. I had it up to 88mph but didn't go back in time, it was quiet. Only towards the end of the 50mile trip did i notice some driveshaft vibration while decelerating.
I also replaced both diff and transfer case fluids. I wonder if it was a lock of lubrication noise?
Since we are on topic, I put it in 4x4, above 40 mph I get terrible driveshaft vibrations. I know the rear shaft ujoints are good, need to check the front. Can a bad transfer case mount do this? My last tracker had no problems going 75mph in snow in 4x4 but it wasn't a v6 either, it was a 93