OK so I just can't seem to give up on this. Almost obsessed to figure this out.
I took off the rear drive shaft and replaced the rear u joint (it wasn't smooth) and had the drive shaft rebalanced.
...and that didn't help.
While replacing the drive shaft today I decided to look at the steering rack again and pulled off the boot covering the inner tie rod end. I jacked up the front end and moved the wheels back and fourth. The inner tie rod end didn't seem to have any play but I noticed that the rack is moving up and down as well as moving side to side for normal steering movement. but the up and down doesn't seem correct.
I took a short video if anyone is interested in having a look.
Steering Rack