There was about 1" of deflection in my MJ's timing chain when I rebuilt the motor. 0.5" is the replacement point.
I just got the timing cover off my LJ. Over 0.5" of deflection in the chain, rub marks on the cover, and one of the mounting tabs for the chain guide broke off causing it to slap against the inside of the cover. I do not know if that will solve my knocking noise yet, but I have fixed four different noise sources over the past two days.
What is the mileage? It's not easy to wear out a chain. A belt, I could understand.