Definitely sounds like the bushing is worn. Easy to fix also at least I think so. Pull driveshaft, Support trans, remove crossmember, knock seal out of tailhousing, pull tailhousing, support tailhousing so it sits square. knock out old bushing with an old screw driver or chisel, coat new bushing with red locktite, position bushing in tailhousing and using the back of a socket with an extension through it from the inside or a bearing driver installed backwards on the driver handle drive the bushing in till it sits flush in the tailhousing, install new seal in tailhousing, reinstall tailhousing, reinstall crossmember, reinstall driveshaft, replace any trans fluid lost, test drive and check for leaks. Takes longer to explain than to actually do the job.