Steering got sloppy today

I got the car up in the air today and there is a bushing that is about halfway between the rag joint and the universal joint on the shaft that looks like the headers cooked it and it has recently came loose because it is all shiny where it used to be. The rag joint looks fine. Would this cause the sloppiness?
 
hmm, no idea what would make it chili dog sloppy except maybe an air pocket inside that finaly combusted. my money is on its more bow-tie noodle sloppy... and its the extreme heat given off by the long tubes that run right by it. like i said before, solid steering shaft.

Torinalth
 
I'm going to say it is also that rubber piece where the top of the steering shaft slides into the bottom part. I have the same exact headers and mine cooked off more than a month ago. I was stupid though and had Ford replace it with the same type. If you arent going to replace it yourself, expect to pay around 4 hours of labor from a dealership.