Originally Posted by
repechage
I agree a very small bit of lateral play at the rim. Do not forget that the skewer will load the system. Way back the Campagnolo USA mechanic advised to have a bit of play in the hub while off the bike, his demo included a set of dropouts, load the skewer up... and the play went away.
I think the same dynamic applied to most self contained bearings save tapered roller which while common on motorcycles are rare on bicycles.
Check out Sheldon's small tool for preloading a bearing. Simple and easy. Gets you very close to zero when loaded.
Cone Adjustment