1987 Dodge Dakota Power rack & pinion - repair or repla

Just purchased this pickup and it looks like the R&P may have hit something. The alignment has been checked and a loose right side tie-rod corrected. Everything else checked ok. After the alignment, the steering is still extemely light and seems to dive into turns. It will not center up on it's own and needs hands-on at all times. When sitting still with the engine running the steering wheel turns an inch or two left and right by itself. The R&P has a severe leak where one of the tubes goes into the left end of the housing at the tie-rod, and I can move the tube about 1/8" either way side to side (I haven't pulled the plastic cover back yet). Is this the cause of all the above problems and can the tube be repaired? Or do I have to replace the R&P?

Thanks.