I'm by no means a transmission expert, but I can see why it would have side play. It looks like to me from the diagram you posted, it would have to have some sideplay in order to stay mated up with the pinion gear. With no sideplay, the amount of travel the gears need to shift from gear to gear is greater than the width of the oiler gear, therefore seperating the pinion and oiler gears. If the oiler gear is a touch over 3/4 of an inch wide and you have 1/2 an inch of sideplay you have 1 1/4 inches of travel maintaining oiler contact. I bet you will find the gears need less travel than that in order to line up and "get into gear". Once again I'm no trans. guy, I'm just speaking on what I'm seeing in the diagram.
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