Serviced my Warn hubs today trying to get rid of a rattle in the hub. When I finished I started looking around and noticed this rubber ring kind of hanging. I don't know what its purpose is or what it's called. What is it and how do I fix it. Also the tire moves up and down when the tire is off the ground

 

Thats normal, that dust seal always, always craps out,and just rides there. I took mine out, and left them out, that way if water gets in the axle tubes, it will come right back out. There is an inner oil seal at the differential

 

Sounds like your ball joints are worn out also.

 

when I took off the tire I moved the hub around and there was visible movement where that dust seal is. Is that normal, should there be some wobble where the hub goes into the axle

 

My dust seal were like that and you cant get them back in so I cut mine and removed them. Just couldn't stand seeing them hang there like that.