Hi Ray,
I have recently finished a refurb on a Myford S7, this model was manufactured in 1964 and I believe is a mk2 version.
See forum posts 'Myford Super 7 for £395 at SRS'
I did extensive work on the saddle & apron, luckily the rack & pinon were in good order but after repairing the bed and saddle the fitting of the apron to the saddle was now lower than previously, and the right thickness shims had to be fitted at the interface of these two components to put the pinion in correct mesh with the rack.
I don't know what you mean by 'bushing' .. my interpretation is that a bush is a cylindrical collar but may mean something else to others. If both the rack & pinion are worn I can't see any way out of it but replacement of these parts however if the two are not in close contact it can feel as if they are worn and with some adustment of apron to saddle can be put back to a working situation, probably if worn there will be some backlash but I should imagine there would always have been an amount of backlash present even in the new item.
This was the apron prior to cleaning up the shim should ideally fit along the edge facing.
As Dave has mentioned a picture of the rack & pinion would give a better idea of the problem.
rgds..Bob.