235 distributor play question

[Tpo]

Getting my new-to-me 60 running. I rebuilt the carb and it runs, though the carb is having issues but that’s another problem. My question is- how much up and down play should the distributor have? My guess is almost zero. Mine moves up a lot, maybe 1/16” I’m guessing. And there is old oil absolutely all around the distributor. I’m assuming the o ring is shot. Would a new o ring take that excessive play away? Am I correct in thinking that excessive up and down play affects the timing?
I can get the shaft to wiggle side to side just a teeny tiny bit next to the points and I consider that normal play in the bushings. Or should there be absolutely none?
Just trying to avoid buying a cheap Chinese replacement.
Thanks guys!