I believe there is a recall out for this. I think it is either the spring or the perch rusts out and gives out like you described. Check with Ford, yes even though you are probably out of warranty. Take this to the general forums too, as you will get more infor.
It was only on the early SVTs and pretty much all Contours up to mid 98/99.
Sounds like Ford needs to buy you a set of Eibachs ehhh?
