was told it was in good condition but noticed it has a little shaft play in and out also some side to side and visible oil on the exhaust side blades

Is it shot

 

no is the short answer.
The long answer involves either having it tested at somewhere like Turbo Dynamics or fitting it and testing it yourself.

 

Spoke to Turbo Dynamics and the tech guy said in and out play is a no no as its a sealed unit and should have no play, there must be about 2mm play in the shaft in and out and he said that would explain the visible oil on the blades and said advised not to fit it

 

If there is 2mm of end float in the shaft/bearings, then i would be dubious of fitting it.
Might be worth while taking the metal oil return pipe off the bottom of the turbo and looking inside with a torch.
Look for an oily/sludgey build up on the shaft between the bearings - although this is not a 100% check for serviceability, it can give you an indication if the turbo(CHRA) is worn.

Mick