is this bad?

That looks like differential fluid to me.

That's where the cv axle goes into the trans axle. Unless it is leaving large amounts trans fluid on the ground or you're running low on fluid don't sweat it. just make sure that there aren't cracks or rips in the cv boot. I know that the squeeking noises like you're talking about are really common on Explorers with 4WD also. look to the outer cv boot where the axle connects to the wheel hub in the front. Since the car is front wheel drive it isn't too far fetched that the boot might need to be replaced because it is overly dry or craked enought rub ans squeek. check to see what the boot's condition is. You can in most cases just pry the outer boot back enough to see what it looks like. In most cases you can temporarily lube the boot to make the noise go away or at least quiet down. hope this helps.