Any ideas on how to fix this?
Last outing the axle wrapped out so badly that the u-bolts snapped and the pinnion shaft broke. Everything else is okay. The truck fell down the hill with no rear axle. As you see it now it is still sitting how we repaired it on the trail.

The plan is to remove the body lift. Make the rear axle stay in the truck. New leaf springs to get more flex cause this thing has no flex at all.

Its a 88 on 85 axles, both are welded up, high steer, 39.5 iroks, chrome-os in the front, dual cases-stock low front and 4.7:1 rear case.

So what is the best way to repair this thing and make it a good trail rig, it was kind of just thrown together.

Lose the rear blocks, they lead to axle wrap and you saw the results. New R&P and install kit for the rear 3rd and it'll be good to go.

Should I put in some kind of anti wrap bar/ladder bar?

Sure that or springs with anti-wrap leaves on top.

From the looks of your rear springs, it looks like they have no overload leaf and with those few thin leaves, there is no resistance to axle wrap. You can see how they are kinked up in front of the block in the one photo. I remember one wheeling trip with this guy who had just bought a used pickup. He was talking up how he rebuilt the rear springs and they flexed really well. His "rebuild" was to remove that heavy overload leaf that was limiting flex. And they were really nice and soft but on the 2nd hard climb on the trail, he wrapped up those springs into an "S" shape and the rear axle was sitting up against the bump stops on the frame.

So with what I have what are the best leaves to use? The current leaves have no flex at all.

Alcan or National for some custom springs, I run Alcans on the rear of my '85:
- http://www.4crawler.com/4x4/4R_suspension-III.shtml#LongerRearSprings

Or Marlin Crawler, All-Pro Offroad or Trail-Gear for some off the shelf springs.

Or junkyard for some Chevy springs.

Cool! Thanks for the advice.
So that will get the truck on the trail but what other areas can I focus on for improvements?

I have the All pro 4" (ish) ones. They are pretty flexy, however I had issues w/ the length; w/ the rear shackle in teh stock location, they rode with the shackle awefully close to verticle. After soem fast riding w/ jumped, one inverted, crammed against teh frame. I have to move the shackle mount forward a bit to get them riding at a better angle.
I'm happy w/ them though