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My shift lever has always been sloppy ('78 300, C6, column shift) - looks to me like the looseness is because the roll pin through the shift collar on the steering column has hogged out the shifter a little. Is there any reason I couldn't carefully drill out both sets of holes and replace with a larger roll pin to snug things up?
My worry too... I am hoping that the slop is small enough to allow for minimal hole expansion, plus if the parts fit snugly that removes some of the angular lever arm at the edges of the holes - hopefully that will allow it to last. Otherwise....I may screw the pooch. Hopefully not!
Instead of going to the next larger English roll pin size, look at replacing it with a Metric roll pin. It works out that they are slightly larger (most times) than the English size currently in there. Works on threaded fasteners also.