> Can the AT develop "play"? If not, is there another likely point
> for this to develop? Should I just replace the AT if I get a new
> engine as a preventitive measure?
>

The auto transmission unit itself is a pair of sun-and-planet gearsets with
fairly small gear teeth. If you were hearing a distinct CLUNK upon wheel
torque reversal, I'd start by examining the ring and pinion in the
differential. I wouldn't change the transmission unless you know it has a
problem. If you're doing the engine yourself, I suggest dropping the entire
thing-- engine, differential, and transmission-- as a single unit and
separating them from each other out in the light of day. It's a heck of a
lot easier to troubleshoot them when they're out. You might start by
draining the fluids from the transmission and differential. If the
differential oil comes out thin and red colored, then the CLUNK is probably
from a buggered R&P, caused by ATF leaking past the seal into the
differential. If that's the case, your transmission unit is probably just
fine, but you'll probably need the differential rebuilt (ugh-- $$$).

--
John Bange
'90 Vanagon - "Geldsauger"