All right my truck is a 94 f150 4x4 with everything stock. the trans is a e40d and the motor is a 302 the rearend is a 8.8. Now the problems:
1 when it is shifted into reverse it shakes the truck forward real hard like I was holding the gas in as i shifted
2 then it shifts real hard into second gear but not third
or OD
3 no ABS light is on
4 the rearend wheels can be turned a good foot before it contact the gears. (is this normal) also had a buddy sit in the truck and shift in reverse while i watch the driveshaft, it turned a good bit then when it stop that is when the truck shock.
5 the drive shaft is not lose
can this be related to the rearend or transmission or tranfer case the reason i ask is because the truck is not mine yet and i want to buy it but i need to know what needs to be fixed so i can get it on the road soon!! what is throwing me off is the shifting into second gear is hard and not the other. thanks for any help!!

 

sound like a bad rear end,

 

Concur with "BAD REAR". The looseness you see is the SLACK being taken up between the gears. Get it to a reputable mechanic (not a dealer / parts changer) who knows rears and can adjust/replace the gear set.

Your other alternative is to get to the junk yard and get a complete rear. Change over your brakes, etc. and transplant.