With my boat on the trailer, when I pick up on the drive skeg, I have about 1/8 inch movement up and down. Is this within limits? Should there be no play or how much is too much and time to replace the pin?

Replace the pin and gimbal ring. Or have the ring repaired. Its not good when the ring breaks.

I get what you're saying, but how do I tell if it's got too much play. Seems to me that 1/8" at the skeg is not much play, but I just don't have any experience in how much warrants the time and expense to replace the pin and repair the gimbal.

An eighth isn't much could be in the lower pin or even the bushings on the rams. What you need to look for is any play in the gimbal ring to steering pin. That should be zero. If there is a little, know it will need to be fixed at some point. If there is a lot it shouldn't be driven. Same goes for the steering arm to steering pin.

Thank you Mr Marine.I do have the motors out so I can get in there to check.

Motors out is a game changer. At least take them apart to inspect. Thank me later. Good luck.