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I am experiencing clunking sounds from the rear.

I have eliminated the noise coming from the exhaust, wheel bearings, trailing arms, suspension, brakes, and the mounting of the diff itself.

The CV joints on the halfshafts are a little worn but not terrible.

The output flange of the diff however shows noticable horizontal play (in/out movement) when I use hand force.

Can anyone tell me how much, if any, play there show be in the diff output flanges?

Second, what parts do I need to replace to service these?

Thanks dudes.

Any input on this please?

That won't cause any noises. If you undo the hex bolts of the driveshafts you can even pull the entire flange out of the diff. Did you check shock top bearings, rear subframe bushings, rear trailing are bushings, propshaft support bearing, gearbox support bushing, diff support bearing, guibo? Clunks coming from the diff itself are pretty rare imo.