Some photos follow...
The shock definately looks pretty stuffed, the boot is well and truly buggered anyway.
Checked underneath from the rear and noticed that side of the vehicle is relatively speaking, drowning in something...

I guess what i'm asking is - would this explain some whack handling? Weird uneven bouncing and an apparent tendency to 'swing out' under normal driving conditions on less-than-perfect roads? What about really harsh sounding vibrations, etc?
I'm going to have to go to Midas (the only likely place that'll accept my remaining means of paying for any work on the wagon for the next coupla weeks) and hope this one wont work out too pricy, so i'm hoping its just the shock... but i'm quite suprised by the way its affecting the vehicles handling, so - anything else I should be looking for??