Ok take that back there is movement now. As the steering wheel is being turned I see the top of track bar squishing up and moving...it should be 100% solid, yes?"
Yes, or at least minimal travel.
I visited Sean yesterday, we looked at his Ranger. The new, rubber, track bar bushings were squishing all over the place. As he worked the steering, I was able to see the truck body move back and forth, while the tires and axle stayed planted.
Stock caster for an XJ is 6.5*, plus or minus. GoJeep has a writeup that you can use to check your caster without a rack: Alignment
I just realized, you have a low pinion axle. You might have to compromise between caster and pinion angles.