I think the vertical movement is ok although Klau may feel the friction is still slightly too high. The free 'up and down' movement seems to indicate no stiction there.
Not sure at all about the horizontal movement though. With the bias (anti-skate) set to 0.5 as instructed, the arm should make a smooth if slightly 'leisurely' movement back to the rest position. Most of the 12** and later Duals I tried this on could move freely with the bias set to 0,25 in actual fact. Set to zero, the arm should stay stationary and if gently blown from the side, should move gently in to the centre and back out to the rest even before the bias is added to the 'test' value of 0.5g.
I'd look underneath and check the bias (anti-skate) spring is set correctly, not damaged or binding (see Fig 9 in the service manual available in the library here) and also check the signal wires aren't snagging anywhere. This arm has low friction needle-roller pivots in the horizontal plane and as long as these haven't been messed about with, there should be totally free movement without snagging or stiction.