So, i tore down my rear end tonight in about 40minutes. I noticed i have a crazy amount of axle shaft play on the drivers side, i could actually feel it wiggle a lot when i was driving my car. heres a video please tell me what the heck is wrong or if this is normal?

second of all, im planning on powdercoating my axle housing in gloss black. Is it safe to sandblast the axle housing if all the openings are capped off? i really dont feel like sanding it down by hand.
Third of all, i do plan on rebuilding it myself, and upgrading to a 31 spline eaton LSD, 31 spline moser axle's, motive 4.10 gears, and a motive bearing kit. Does anyone have any good reads, or information on rebuilding the 8.8.
I did a rough inspection on all of the gears, everything looks top notch. heres some pictures for ya all.
before tear down
After

second of all, im planning on powdercoating my axle housing in gloss black. Is it safe to sandblast the axle housing if all the openings are capped off? i really dont feel like sanding it down by hand.
Third of all, i do plan on rebuilding it myself, and upgrading to a 31 spline eaton LSD, 31 spline moser axle's, motive 4.10 gears, and a motive bearing kit. Does anyone have any good reads, or information on rebuilding the 8.8.
I did a rough inspection on all of the gears, everything looks top notch. heres some pictures for ya all.
before tear down
After