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You should really only just be able to detect movement in any direction. The more movement it has, the more out of balance it will become, which will in turn make the movement worse!!
1-2mm at a guess, 10mm and the blades will have touched the housing, so perhaps consider popping that in the wheely-bin.
mines got about 2-3mm but isnt hitting the housing but its making a slight whistling sound which is the air being disturbed from the outof balance shaft ......oh well....ill just fit the stage3 hybrid ive just bought
seen a couple of rebuilt ones on ebay today as mine had play just finished fitting it bought mine of ebay seems ok or you can buy the kits from turboforce . co.uk has any1 tried these rebuild kits?