Is any drive line play at the transfer case output normal ?

Yes, some play is normal -in and out that is- sometimes this will become more noticeable after dropping driveshaft, like to change carrier bearing or u-joint.

any? yes. alot? no

End to end no problem. Up and down could be a problem.

There is a very small amount of up and down. Enough if I am rough pushing it up and down I can hear the shaft moving in the transfer case.