Ok guys, I need first to know what this hanging rubber/plastic piece is, I thought Sway bar link but I'm not sure, second is this an OEM Drive shaft? Ignore the tranny fluid spray, Ill explain that later.

 

Sorry for the bad pics, I gotta rush to work, I can get more later if needed. Thank you so much guys.

 

it looks like the first one is a hanger for the exhaust. the second one does not look like what's on my jeep.

 

The first pic is an OEM rubber exhaust hanger, the second pic shows that you have a transfer case with a slip yoke eliminator kit.

 

Ok, thanks for the help. The first one makes sense since I just had my exhaust cut off. And how many sizes of SYE's are there? Right now my lift is sitting at about 3.5"-4" how much higher can that go? I am looking at a 5.5" Lift

 

SYE's are a one-size-fits-all type deal (for the most part). They correct your driveline angle and allow you to use a front drive shaft in the rear. You'd be just fine with an SYE and 5.5". You may have to get a custom shaft made if for some reason a front one wasn't long enough. You may need axle degree shims, you may not. Since you already have the SYE, I'd go for the bigger lift, and then investigate your driveline geometry afterwards. You may not have any problem at all.