Check to see if the inner CV joint (tripod) has come out of its housing. If it did, the knuckle will be too far out, like you state. The hard part, if this is what has happened, is getting the tripod back into the housing. It is much easier if you have the special "earless" CV boot clamp pliers to release the clamp and peel back the boot so you can see what you are doing. Also clamp a 2 foot 2x4 or a 2x2 board to the control arm for extra leverage. I sit on the board and it easily holds the arm down as you try to get the ball joint onto the knuckle.
