Steering box frame problems

Finaly fixing my mom's '88 XJ, and I discover this:








What do I do?
When turning the wheel or accellerating I hear and feel a clunk under my feet and when the wheel is turned either way at a stop the bumper moves in relation to the grill because the frame twists. :shocked:
HELP!

I would grind all that off make a good repair then plate/box it inside and out,the longer the better!

This might help after the frame work.........

http://jksmfg.com/sbs_system.htm

Here is link to my repair. I bought C-rok's reinforcement brace. He is a naxja member. For $97 with shipping this is an excellent designed product. Easy install. It braces the bottom and both sides where the steering box mounts thru the uni-body.

My Brace

C-Rok's site