Can you see the bushing?

Rick -- there appears to be some galling in the second photo ... if it were mine, I would pull the tail housing an put in a new bushing ... just sayin' ... Craig

Yup, the bearing was bad.

So I decided I would at least try to support a transmission shop that advertises in a local cruising newspaper. However, when the guy said the bushing is discontinued and my housing would have to go to a machine shop, or I could bring the replacement parts with me, I decided to call elsewhere. Found a trans shop that has everything needed in stock, has a press, and is closer to home.