My "intuitive mechanical sense" tells me that the following movement should not be happening:
http://youtu.be/IsWH4mceI7w

It is a Dana 60 axle.
The hole in the axle bracket is apparently elongated.
Any suggestions as to the best fix for this problem?
...Other than running it off a cliff.

 

oh yuck, maybe drill it out to fit a bushing sleeve for the ends of the bolt?

 

Freeloader, that whole bolt looks loose. I had the same situation as that a year ago. Before I panicked too badly I would recommend you replace the bushing in the trackbar and a brand new nut and bolt. I had to get the nut a bolt from the dealership, the are a funky shape and the nut has a tab on it that acts like a built in box end wrench to stop the nut spinning. If it still wobbles like that when all snugged up, I would make 2 shims from the bushing sleeve you get when you buy an aftermakrket 2 part urethane trackbar bushing. Basically cut 2 thin slices off the new bushing sleeve, and drill out the holes in the bracket to the same size as the slices of bushing sleeve you just made. It is going to be a few hours of work but it will cost you less than $20 in parts.

If the description I just gave isn't clear, let me know and I will try to explain better.

 

Thats a drag..

I just repaired mine with a new bushing, but my bolt hole wasn't egged out like yours.

You could weld a thick washer over the front portion, however the rear side would be a bit hard to get to without removing the bracket then welding it back on.

Tallguy might have a better solution for you....

 

If it is that worn on the hole, I would alter it and go with the 3rd gen upgrade, the bracket to convert will move the bolt location, fresh hole........

 

I had one that was ovaled bad. Cut it off and built a new one. Couple hour job.

 

Thanks for the input guys.
I have not actually disassembled it yet to see it internally.

I assume the bushing is worn-out so that friction against the hole in the bracket and/or the tab on the flag nut hitting the end of the slot in the bracket is causing the bolt to rotate.

SIXSLUG's response seems to verify my suspicion that there is a second hole in the bracket behind the track bar end that will also have an elongated hole to match the one in the front.
That does complicate things a bit.
I have thought about welding to fill in the hole, then re-drilling it, or adding a washer or similar to the face of the bracket.
A second hole back behind complicates those ideas.
And, I would like to avoid having welding done if possible.

I'd like to take a closer look at Tallguy's and joem's suggestion's.
They seem to be similar.