Ford 8000 PTO shaft/seal question

[ford8000tractor]

I have a ford 8000 tractor and I am needing some help. I have an oil leak coming from the shaft and I suspected the shaft seal, but after I just went out and checked again, I can pull the shaft back and forth in the housing. Now, correct me if I am wrong, but shouldn't this be snug and not be going in and out?

Also, if I turn the pto shaft, everything turns including the seal.

Here is the youtube video of it. Any help is appreciated.

IMG 8649 - YouTube

 

[ford8000tractor]

Update: I removed the 4 bolts and took off the bearing retainer and seal. the seal that is in it is brand new and for some reason this seal "turns". the seal Part#9822345 . Also the shaft play back and forth I have not figured out as the bearing looks good and see no other obvious issues.