Eh, Ford IDI Turbo book says that lateral play is OK, as long as you don't get any wheel-to-housing contact.
Mainly as a bit of play will disappear as soon as you have oil pressure.
Basically, all you are looking for is that it spins freely.
Also, you definitely want to look at the blades while doing so, make sure they don't look chewed up. Little tiny nicks(< .020") won't cause much issue, big chips or anything are cause for alarm, mainly because it meant something got sucked into it.
Remember that the blades(intake wheel) can be replaced for around $200.
Edit:
Also, no matter what you find, if you like the truck... bargain a good price. *anything* on one of these is fixable with some time and a bit of money. It's just a matter of getting a good value when buying one.
I mean... Transfer case skipping? Junkyards have replacements. Motor shot, with good turbo? JY motors are cheap. Good motor with shot turbo? The center section can be rebuilt, or the entire thing upgraded.
The real question is whether you like the truck, and what the price is.