Hello flyboyw20,
The in/out play is perfectly normal and necessary to avoid crushing the thrust bearing. The dual radial bearings on the outside with a thrust on the inside provides the perfect amount of radial support while the thrust bearing is isolated to only thrust force. Fly your helicopter with confidence!
Also, the dimension to worry about is not from the base of the hub to the end of the hub, its from the center of the tail output shaft to the end of the tail hub.
Thanks,
Matt