the torn rubber ring is the dust shield that keeps excessive junk out of the axle tubes... The u-joints is what's making the clicking. If you do it yourself, figure about 2 hours per side if it doesn't give you problems, and $25 per joint.

BTW, if 1 side is clicking, do them both as the other side will start within a few hundred miles.

 

Just did mine 2 weekends ago, not really a hard job. The write up on pavementsucks is right on. On thing I would suggest is if you don't have a press rent a ball joint press from your local parts store. AutoZone has them for about 100 bucks. Well worth it. Also call sevral parts stores for price quotes, I called around and the price ranged from 17 to 54 dollars.