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With an axle that old, you're going to have some significant wear in the pinion bearings. They seem to do just fine like that, however. I wouldn't mess with the axle or try and "tighten" the pinon nut. The bearing clearances are set by shims. If the bearings are worn, tightening the pinon nut to specification will likely make the bearing preload MUCH too tight. If you must replace the pinion oil seal, note the force it took to remove the pinion nut, then replace it with the same amount of force . . . NOT normal nut torque.
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John Stewart
74 Spider
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