I got a new to me bike, 05 s40, 8500 miles and have a question on the wheel hub assembly.  While looking this bike over I noticed that the "driven pulley", or wheel hub assembly, not sure what to call it exactly, seemed kind of "loose".  What I mean is when I have my hand on the pulley and "rock" it back and forth it moves.  Is this a sign of the bearing going out?  I have noticed a noise that sounds like a squelch when shifting gears, but it doesn't seem like it comes from back there.  

I kind of jumped into this bike, but I think that with the reputation it has, it is going to be worth a little work.  The only thing I have to go by is my experience with a Yamaha tw-200.  It is chain driven and the rear sprocket does not give a bit when rocked back and forth.  Please advise, thanks.

Its designed that way,

Now ya got 2 sayin the same thing.

First, remember, I'm female.  Where are you rocking?  And you mean left to right of the bike, or front to back?  I just went and tried to rock on about everything around the hub and nothing moves.  Maybe I'm just not strong enough to move it, or don't understand.  

I shimmed mine with sliced bicycle inner tube and glue. It moves much less now. Still moves, though. Try that, can't hurt anything.
Babyhog, no hardfeelings, but - you're not strong enough!  

Well, dasch might be right.  I identified the part and went out and tried again.  I still can't move it.  Is that bad??  

I'll get someone else to try, little weakling that I am.  And I thought I was strong.....  

Didn't mean to hijack your question, nathan.  Hope you don't mind me figuring mine out with you.  

no hijacking detected on my end    Just glad that its normal.