Blown S3 coilover? (pics)

[Insedanity]

I've recently noticed a clunking sound coming from my front end on some bumps. So I took the wheel off to see if I could see anything wrong. When I did, I noticed a lot of oil stuck to the coilover and some of the parts in there. It's a real sticky oil, you can see the gravel and stuff stuck to it. Is that what the shock oil looks/feels like? Think my coilover is blown?

http://i2.cashmoneyuploads.com/tn/122255.jpg (http://www.cashmoneyuploads.com/view/v122255/)
http://i2.cashmoneyuploads.com/tn/122256.jpg (http://www.cashmoneyuploads.com/view/v122256/)
http://i2.cashmoneyuploads.com/tn/122257.jpg (http://www.cashmoneyuploads.com/view/v122257/)
http://i2.cashmoneyuploads.com/tn/122258.jpg (http://www.cashmoneyuploads.com/view/v122258/)

[N2MB]

yep thats what it looks like.if you havent adjusted the bottom lockring its warranty through mopar performance