Should there be ANY side to side movement of the drive shaft and U joints in the Yoke on the Axle? I'm talking about 1/16" Or should it be bolted in without any movement at all?

The u joint cap C clips should fit tight against the inner face of the yoke and there should be NO side to side movement. Any side to side movement of the joint in the yoke is wrong and it will not last long plus you will have a H of a vibration.

should be no side movement

what size u-joint and yoke?

make sure you have the correct size straps for the u-joint caps as well

I agree, there must be no play, nor sideways nor radial.

And it's not exactly "on the axle" or "bolted in". If you disassemble it you will find a cross with bearing caps on all ends.

If there is side movement when bolted in, either it worn or the yoke is spreading. Eventually it will pound out and break! That's why I went to a steel billet rear end yoke.