The lateral wiggle is at the b-axle. The click I have not yet found.

So this weekend I replaced the shift cable, I replaced the bolts for my Sachs friction shifters (the old ones I could not snug up enough) and added and "e clip" to the b-axle.

Got the chain dialed in and landing in the right spot. Still could not produce the click on the stand. Took it to work this morning and the click is worse.

The e clip took up some of the lateral wiggle on the b-axle.

I know at this point that the click is either coming from the b-axle's lateral wiggle or one of the jockey wheels. Both wheels feel fine in there housing. The bottom one has no discernible lateral movement the top one has some lateral movement. All teeth appear fine.

Next step will be to remove the jockey wheels and check them for contaminants or bad parts. Failing that it appears the rear d is shot.

Any other thoughts?