Originally Posted by reracer

You are talking about the ends of the dog bones binding inside the outdrives. You should always check this when you build up a new car or make any changes to your setup. The shocks should be the up travel limiters. Take the shocks off and cycle the suspension to make sure it goes further than the length of the fully compressed shock.

I am surprised that this happened with the stock shocks. I'm using a shorter(when compressed) shock, and they don't bind on my setup.

Also make sure to make sure that the sway bar is not contacting the axle at full compression. I did have this problem.