Coils rubbing on each other?

[Inside]

So.. did my suspension about two months ago and my car started chirping from the rear every time I go over a bump.

Took apart the strut and it appears that at the top the coil has been rubbing against itself. (argh) There's a pit in the coil and also some rust around where the coil has been scratched (sorry, no pictures..). This is on both coils.

Also, I replaced the rear stabilizer links with the recommended parts and... it looks like they may be too long?! They are causing the sway bar to rub up against one of the links (lateral link?)

So.. what should I do? Should I replace the coils (as there are now gouges in them)? Get an insulating coil sleeve? I have the original coils + KYB struts and that's about it. Kind of wish I had sprung for a complete pre-assembled strut kit given how much time I've spent on disassembling and reassembling these struts.

And what about the rear links? They are the suggested replacement for the P5...

 

[kamesama980]

It's not unsusual for coils to come into contact. They ought to have some lube or padding though. bicycle inner tubes work well if you can't find anything else.