Rear iso

Spec. is 0.010" (0.25mm) front & rear. You can go a little tigher on the rear 'cos movement is mostly rotation - 0.005"  (1.2mm), say, but don't lock it up.

Movement in the rear wheel - you shouldn't really be able detect any movement that's down to the isolastic. With both Isolatics set at 10 thou, the maximum movement at the rear wheel is 30 thou or 0.75mm. The swinging arm pivot is the usual suspect for rear end play.