Dana 20 Question

Hi all, I have a question about my drive train. Should I have any play in my rear output yoke on the transfer case? My jeep just started making some noise when rolling, a grind, silent, grind, silent, very light grind but noticeable. As the drive train rotates it has something wrong. I took out the drive shaft to isolate the rear end from the trans/transfer case, there is slop on both yokes but nothing noticeable except a sharper catchy feeling when i spin the output shaft, yoke turns just slightly, maybe 1/8" movement past vertical till the case engages. Can't tell if this is gear slop or something worse. Both yokes have no side play and the u-joints are fine. Anyone ever spun the output shaft and noticed anything like that. Just trying to figure out where to begin. Thanks for the help. Rob