Well the new mount is installed. It took a little wile to punch out one of the rivets. We had to drill it out. It also required a little grinding to remove the short welds to the frame on each side of the mount.
Once that was done it was a matter just bolting in the new mount with copious amounts of Lock Tight. We were thinking of the lateral movement in the axle. Everything looks like it is order- not sure where the lateral movement is, if at all. The only thing we could think of was at some point a hair-line crack developed while off-road, became worse over time and revealed itself when we were pounding out the bushing bolt, which by the way was not coming out easily even with wacks from a 5 lb. mallet. Again, good thing this did not happen out on the road or while wheeling.