Hi, I've got a 96xj and inside the drivers side spring there is a rubber sort of thing that looks really rotted. It seems to have something to do with going over really big bumps. The picture explains it all.

 

That's whats left of your bump-stop. Its there to keep the axle from going up so far that the tires rub on the jeep.

 

That would be the bump stop. It limits the upward travel of your axle and wheels so the wheel doesn't hit the upper fender when going over a large object.

 

Yup those are the bump stops or where they are supposed to go. You are missing the rest of it lol

 

looks like you need some swaybar bushings as well lol

 

Thanks for the help everyone! I've got a nice looking, but rotted floorpan xj. There isn't a spot of rot anywhere else besides the floorpans, i still wish it want there... The previous owner said they took it on the beach, and they probably never rinsed the bottom of the truck off after going to the beach... Salt and cars don't mix, like that Chevy nova commercial from years ago...