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Scott, No it should not be loose. The safety lever should be very secure and positive. Loose is not good. Loose safety lever in fire position is generally caused by safety spring issue. Remove safety. Replace the spring or take spring out and stretch or expand it a little and should tighten the lever up when in fire position when you reinstall the lever. Or call Colt to replace safety lever spring. If lever is loose in safe position generally the plunger detent is not engaging lever positively.
Scott, for safety and warranty reasons, I would call Colt for their suggestion/resolution at Tel: 800-962-COLT (2658) *Mon-Fri 9am to 5pm EST
the way I read this is that it is tight in the safe (up) position but has some movement in the fire (down) position I have 1911s that are super tight in all positions but I have some that have some movement in the Fire position. Since I cant see it over the internet and Since it is tight in the safe position (up) I would ask my local FFL/gunsmith or other 1911 shooter (if he is familiar with a 1911) his opinion.