I picked up a Repo'd Velocity 260. Today I was finally able to uncover and begin cleaning it up. I noticed quit a bit of play in the steering wheel. It isn't play in the outdrive or cable, it appears it is in the housing behind the dash... Can this be adjusted or does it sound like I may need a new cable housing/assembly?

make sure it is not the gimbal ring and steering arm that are lose, that is the most common, if that is good then there can be play in the cable at the steering wheel, replace cable and helm assy, together, and I would suggest a rotary steering cable sys. not a rack and pinion sys.. If you got the money, go full hydraulic.

Turned out to be a $3.66 bushing/sleeve that sits between the steering wheel hub and the helm assembly. The sleeve centers the steering shaft into the helm and the face of the sleeve sits between the hub and helm. It turned out to be a discontinued part., but I was able to locate one and had it shipped to me. Put it in and it's like new!!! That will be the cheapest repair I ever do on a boat.