Sounds like it's probably your rack. With the engine turned off, have someone turn the steering wheel back and forth while you look at the rack. If the input shaft to the rack is turning back and forth, but neither of the tie rods are moving in and out of the rack, it's bad.
This same thing happened to my rack a few months ago (except mine wasn't hanging up). I got one at the pull-a-part for about $20 and solved the problem. Plus as a bonus, the rack I pulled happened to be a sport rack so I actually got an upgrade!