Meade 1.25 diagonal

I just got a used LX200. The diagonal spins freely after tightening the nut that attaches to the back. Is it supposed to spin or is there supposed to be enough friction (washer maybe?)to stop it from rotating. I took it apart to futher examine it. All tubes into the diagonalbody are tight. The tube does not rotate in the body of the diagonal nor does the set screw slip. If I mount just the tube into the visual back and tighten the nut there is play (1/32-1/16). My guess is that there is suppose to be a thrust washer or nylon spacer between the visual mount flange and the nut flange

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Ty, is it a Classic LX-200?
I'm trying to understand what you are saying here...

SCTs normally have a visual back, to which you normally attach an SCT style diagonal. (screw in type)

If you have a "refractor style" diagonal, how are you attaching it to your scope? You would need a special kind of visual back, or an SCT adapter, or a 3rd party Crayford focuser, or something like that.

Can you be a little more explicit on what you have, or can you take a close up picture and post it?