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2nd Gen Ram Tech1994-2001 Rams: This section is for TECHNICAL discussions only, that involve the 1994 through 2001 Rams. For any non-tech discussions, please direct your attention to the "General discussion/NON-tech" sub sections.
16 in factory wheels w/305/70/17 on it and the ball joint is hitting the outer edge possible he means side wall of tire. HMMMM!! and he feels no play. I think there is a binding issue and both upper and lower plus wheel hub is just shot. Don't the 2wd 1500 wheels sit about an inch away from ball joints?
As was mentioned earlier, it would be very helpful to see a photo of the wheel rubbing the upper ball joint, along with a photo of the actual wheel in use.
I have 305's on mine with wheel spacers. Had the same issue with my 02 2500 and the check engine light came on. I put the spacers on the next week and it drove very nice after that plus the light went off. Spacers are pretty cheap on Ebay and Amazon.