From another site-
"The tolerance for UP & DOWN movement for the lower ball joint is .090 or 90 thousands for the decimal challenged. That is measured at the joint with a dial indicator. It also includes TOTAL up & down movement added together. In reality, with the wheels hanging, gravity moves the dowmward movement to zero , so all the movement is UP anyway. Now if you are testing your ball joints visually with a pry bar under the tire you can easily be convinced that the amount of movement is excessive out at the top and bottom of the tire. Remember that 90 thousands is almost 1/10 of an inch .(at the Knuckle). Magnify say 50 thousands out to the end of a 20 inch wheel and you may see ½ to ¾ of an inch of movement and be alarmed. I have done this test many times with technicians. They test with pry bar only and condemn a ball joint. Then I have them put a dial indicator on it and find it’s LESS than ½ the limit of the spec.
The same situation for the upper ball joint except it’s .060 (60 thousands) and is in the IN/OUT direction, measured at the Joint/Knuckle. And does NOT include some of the movement you can get from the wheel bearing."
"Example: A customer comes to me with 45,000 miles and was failed a safety inspection. He's happy with the truck, tires wearing good, no complaint. I measure his ball joints and they are 25 to 30 thousands. Should I sell him ball joints ? No! I tell him to stay away from that garage. This is typical. I see this with ball joints up to around 50 thousands. They seem to accelerate play after 60 th. (up & down). I start to suggest/sell around75 th & up."