Then you are looking at close to 1/8 in. of end play. It dose seem like a lot to me but maybe one of the two cycle member's will know more then me. I am just guessing from a two cycle Honda motorcycle engine I have in my shop which I think runs a lot higher RPM's. I don't even remember the last time I worked on a 2 cycle lawn mower engine.
Yep, an enormous amount of end play. It must have needle or roller bearings as no ball bearing would tolerate that much slack.
I got hooked on 2-cycle mowers as a kid. I mowed my Grandma's yard which was about 1/2 mile away from our house. I could either push my Dad's cast-iron-everything mower to her house or rent an aluminum deck Lawn Boy from a hardware store that was a block from her house. It was well-worth the rental cost.
When I got married and my own yard to take care of, I bought a used Craftsman aluminum deck mower. Not a Lawn Boy, but still pretty light, even with its 4-cycle engine. With marriage came in-laws. With in-laws comes people wanting to borrow stuff, including the lawn mower. One of them actually checked the oil(!) and seeing that it was at the low mark on the dipstick, added a quart. Later, they called to complain that "your damned lawn mower won't run." But it had run, long enough to blow the seals out of it. It was the beginning of a very quick end for that engine. Try as I may, I couldn't keep it from fouling the points with oil, necessitating numerous flywheel removals, the last of which resulted in the tip of the crankshaft coming off with the flywheel.
That's when I bought the Toro 2-cycle. Light. No crankcase oil to worry about; no oil changes.
What I hadn't counted on was somebody (wife) trying to mow a cast iron water meter cover with it. And not telling me about it for over a year. She had a neighbor put a new blade on it and I was none the wiser.
Sometime after that, the knocking began. Bear in mind, the water meter cover incident took place at a house we moved out of 12 years ago, so this thing has been knocking for a LONG time. We only use the mower for trimming now but even at that, you'd think if it was a rod or detonation or anything serious, it would have blown up by now.