Yup, it is wore out, both the axle and the hub. There was a brass or bronze bushing in there that needed alot of grease. I bought a plow once that this was so wore out the guy had enough room to push a piece of PCV pipe in there to take up the play, and by golly it worked pretty good. If it were mine I'd look into finding a used one or try to shim it up some using whatever you got in the scrap pile. It doesn't have to be perfect. I think the ones with ball bearings had a hub with a 4 or 5 bolt on solid dish wheel.
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