Ok gang, Im newer to Hondas but not new to playing backyard mechanic.
I knew my clutch set was wasted, but upon pulling the transmission I found the input shaft does have play side to side, not as much up and down play however.
It also does have a bit of a wirr to it spinning it in either gear or neutral.

I recorded a short clip on my phone and uploaded it to youtube.
http://www.youtube.com/watch?v=7Mdpw2G5xLI

 

input shaft bearing is bad, if you pull it apart you will most likely find the inner and outer races and loose *****, the plastic cage will be in tiny little piece throughout the transmission. Replace the bearing and the input shaft seal.

 

94EG8 is right. Your ISB is undoubtably toast. Hopefully your entire tranny isn't powdered toast also. The input shaft shouldn't have any slop in it at all from side to side.

You have the hardest part completed already, the tranny is off the engine. Open the case and see what the dealio is. With that much play who knows what you'll find.

 

You'd be surprised actually, you would think the input shaft would start walking and frying gears but generally everything else is ok. I have seen one D16Y7 tranny with a bad ISB destroy an input shaft (transmission case cut a deep grove into the input shaft about 1/8" deep all around) other than that every other one I pulled apart was fine other than the bearings.

 

holy *****

i remember having shaft play in my input shaft when i put one in ... 10k miles ago ...

been running ok other than some 3rd/5th gear popouts, no wierd sounds at all

 

i let my isb bearing go for about 5 months then one day i lost everything besides 3rd, and even then when taking off in 3rd to get to my shop it sounded like a jet engine starting up haha

 

I'm picking up a '92 tranny tomorrow due to me '00 Y8 ISB going bad. Everyday it grinds a little bit more and a little bit more violently. I'm going on a 700+ mile trip to Hilton Head in two weeks, so I gotta slap it on, I know that ISB won't last. I don't get to see the tranny in action, original car is already gone. So I'm seriously crossing my fingers that it's a good tranny!

 

Well
as a quick fix I went and bought another transmission today for my car.
I found a C5F P20.. which from my research online shows to be from a 1.6 DX model.
As of now the trans is in my car.. but its not finished. I didnt realise the guy had taken the studs out of the top mount on the transmission so I did get the one out of my old trans, but the second prooved to be impossible, Im suspecting if I continue trying to get it out it may bring the threads out with the stud..
I already wasted one of the nuts using them as a jam point to attempt backing the second stud out.
Good Game for that with my new matco impact..lol

So as of now, freshly machined stock flywheel, new rear main seal, Autozone stock clutch set... which Im predicting will be a mistake, but it was the quickest solution for now..

Going to be tearing down my S20 trans this week once I get my car assembled.. Sick of driving my gas guzzling Grand Cherokee.

pics will come with the dismantling.

 

+1 for that teardown with pics, i wanna tear my s20 down and just have fun with it