so over the last few weeks I thought my rear brakes were squeaking, but over the last few days I have come to realize it is somewhere in the rear suspension, I can actually hear it when I push down on the rear bumper. I also noticed while looking under there that the passenger side shock looks a little loose, actually looks like the bushings are almost worn out. when you push down on the truck it looks like the shock pushes down through the bottom mount a little and the other side doesn't seem to do that.

Does anyone know what might be squeaking under there before I investigate this further?

 

Don't know if it has anything do to with your squeak but I would definitely pull your shock off and check the mount and bushings. Sounds from your description that it is time for new shck bushings, if not shocks.

 

You and a friend need to bounce on the bumper while you get under the truck and find your squeak, this is not rock science.
By the way, any shock with bad bushing will squeak, are you still running the factory shocks, if so they have long since died.

 

not sure if these are factory or not, I bought the truck used they are black, and pretty dirty. I did however twist the lower part of the shock all the way around a couple of times and noticed a very similar squeak, I am guessing this is my problem, that the plunger inside the shock is squeaking against the housing

 

Those are long since dead factory shocks.
What do you use your truck for, do any wheeling, are you interested in lifting it for a better ride and clearance or just want to replace the shocks? Best replacement shock for the Disco's is the Old Man Emu, HD shocks, will last forever and give you a great ride.

 

I take it out in the desert every now and then but usually my off roading trips are mainly bumpy dirt roads and an occasional dry wash. I would love to lift it but the wife would probably not let me (she and my 2 girls have a tough time getting in it now) I would have to get steps for all the doors. I would say 80% - 90% of my driving is city streets and highway (45-50 mph on city streets 75-80 on highway out here). how much of a better ride will a lift give me? how much does a lift cost? and can I do it myself (does it require any special tools)?

 

A full lift, springs, shocks and a steering stabilizer will run $670 plus.
OME shocks along are around $300.

 

Go to AutoZone and buy Gabriel shocks, $120 for all four, lifetime warrenty.
Otherwise just go to your local muffler shop and get new shocks, $250 at the muffler shop.
For the kind of wheeling that you do you dont need much.

 

Ball
joints on the reAr swaybar.also check the bushings

 

Gabriel, boy Spike, do we have a difference of opinions there.
Gabriel makes a decent shock but no where near what a Dico needs when off road.
There are only 2 brands of shocks that most common on a Rover, OME's and Bilsteins. Past those the rest are substandard for our slightly top heavy trucks, on and off the road.