That would be side to side, any movement in this direction could mean the actual balls or races are wearing out. Normally what happens is the bearing gets dry (no oil/grease) or dirty. Then the friction and heat cause the cages (these hold the balls in the proper position) to fail, which leads to major bearing failure. With In and out movement there is a little more play, even if there is movement in this direction when the motor energizes it will self align (center the rotor betwween the coils). Of course you don't want excessive movement here either, but a little is ok.
Here is a shot of a motor showing the spacers/shims that are used to center the rotor. Below that is a blown out bearing, where the cage failed. Another thing you need to watch is when installing bearings always try to push them in by there outer race. Some people just slip them over the rotor shaft and hammer them in, what this does is it puts pressure on the inner race, which then transfers that to the balls. This can leave microscopic dents, which will cause premature wear. I made a simple aluminum tool out of some scrap, that has a small cone shape piece in the middle that the center hole of the bearing rides in (this centers the bearing), then it is dished out slightly and only the outer part contacts the bearing (the outer race). This way I can push in the bearings with pressure only on the outer race.
Thanks for all of the input. Just to follow up, Neu recieved my 1512 on Tuesday afternoon and they put it in the mail back to me Wednesday afternoon. I also ordered a tube of 10 replacement bearings. The charges where $60 total. ($30 for the bearings/ $30 for repair and shipping) I would say that's pretty good all around. As far as how often the bearings need to be changed, they recommend replacement as soon as the bearings make any noise what so ever. I will start removing my motor every 5 packs from here on out.
Thanks again for your input.
Brian