Joe sounds like you worked out some of the problem, but you need to keep going. If you took out all the lash, you shouldn't have any movement at the steering wheel that doesn't move the tires at the same time. Next time, set the steering wheel slightly off center and tie it down with the seat belt or rope so it won't move. Then work on the lash adjustment again. Once you remove all the free play, the wheel should tighten up as you cross center going left to right and them back with the steering wheel (about 2 pounds of pull).
If the toe-in adjustment is off, you will never get a good feel for the road when driving, they wonder all around and have a looseness about them. Caster angle will do the same thing. Does it have a wedge spacer under each front spring? These tilt the king pins towards the cab. Camber is not adjustable will out a hugh press to bend the axle.
The 1/8" toe-in is just a starting point and a good number to shoot for, with two people, its pretty easy to hit if the tie-rod turns easy. A bent tie-rod end won't hurt if the adjustment is still correct.
Just keep at it, you almost got it.
Joe
Last edited by Joe H; 03/23/2012 3:34 PM.