The looseness is in the ball joint under the bellows. This socket is welded to the toothed rack (ZF type). It is not in the outer tie rod. The tolerance on axial play is.020", mine is .025".
Has anyone found a way to deal w/ this or am I a hunting for a rebuilt rack?
I can get the piece from the dealer $300.00. I think a rack is $450-500.
Any ideas?

It's not welded. The ball end is just screwed into a threaded hole in the end of the rack. You need a small pipe wrench to remove it or some other kind of locking pliers that can grip a round object. There is a locking washer that has a bent tab to keep the tie rod end from loosening up.
It should all be visible when you pull the boot (bellows) back. If the boot is good, it can be re-used. If not replace with new, they're not expensive unless you get them from the dealer. Secure the boot with nylon tie-wraps.
The part you need to order is the "inner tie rod end" and it's available from FCP Groton- see their "Steering" page for a full explanation of what you need to check before ordering.
They also charge less than $200 for a rebuilt rack.
Go here:
http://www.fcpgroton.com/volvo700900steering.htm
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Rob Bareiss, New London CT ::: 'Roterande Fläkt Och Drivremmar!'

I bought a rack from fcpgroton for 199.00!
jc
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1985 740gle na, 1990 740gle 16 valve