Rear Axle End Float??

[OldManGhia]

I have had an on going problem for the past 5 years with poor brake peddle pressure. The brakes have been bled numerous times, master cylinder, booster, and now the front calipers have all been replaced. I have also had a problem with the hand brake requiring adjustment 2 to 3 times a year.

The car was at the mechanics this week for the annual rego inspection and he was not able to adjust the hand brake sufficiently. He did find that the rear axle end float (about 1 mil or so) was excessive and blames this for the poor hand brake adjustment. He has also suggested that this may be the cause of the brake problem. His theory is that the rotor is pushing the pads away as the axle moves out and when I use the brakes the pads have to be pushed back against the rotor before there is any brake pressure. He also said that the local bloke who repairs the diff housing has done about 40 of them mostly AU for the local Ford Dealer. Because my diff is not noisy a proper repair should cost around $900. But if the diff was noisy $1500-2000. The cheapest way to fix it is to replace the wheel bearings and use a spacer to take up any remaining movement.

Has anybody else experienced anything like this or have any suggestions??