Drew, the tire is fine. Their is no play in the hub, no noise, etc.
-something has play - why else would it wobble?
I believe that when I'm in two wheel drive, the front alxe is trying to engage somehow. Like I said, I get a noise like the tire rubbing on a fender, more of a growl then a metalic noise.
-sounds like a bearing still
The driver's side is not engaging when switched to 4x4, WHAT WOULD CAUSE THIS? The selector?
-cause? Anything that interrupts power to the end of the axle shaft; bad axle u-joint, broken axle grinding up inside housing,or broken hub selector.
The wobble comes when the front alxe is engaged, so I'm assuming the spindle bearing is shot.
-Odd that it only wobbles when the axle is engaged. Wheels bearing do not operate differently if in 4x4 or not. Don't have an answer on this. (Now if the truck rocked front and back while going under 20mph - that's driveline geomerty being off and the rocking is caused by the off angle u-joints as they turn).
What's the chances of the spindle being destroyed from the bearing exploding?
-I think you meant bearing pieces scaring the machined spindle surface, well, that answer depends on how long you drove it like this. Spindles are tough and can handle small nicks ect - as long as they are not on the seal edges. nedd to inspect the bearings.
The tire rolls fine when the front is not in 4x4.
-Raise the tire and spin it by hand and then with the hubs engaged and the transfer in neutral and feel for grinding as the wheel turns. If it only grinds in 4x4, then the spindle bearing (inside the spindle) is bad ($5)- very rare since most 4x4's spend little time in 4x4. Hmmm. . . lots of sand or water in the truck's past? Sand/washouts require frequent diff. oil changes and spindle re-greasing.
Then tear down the spindle for inspection - I assume you repack the grease regularly right? Have at it. Hope the damage is minor.
BTW: M29/M29c mean anything to you? Just wondering . . . .
-Drew M.