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The rubber lip is towards the spindle. Red metal is towards the rotor and bearings.

Try jacking up the front wheels turn back and forth see if there's any binding.

Did the pump work correctly with the original steering box?

If you want to firm up the front to match the rear get the KYB gas adjust shocks. I put these shocks in front and rear and it was anight and day difference. Went from mushy to firm just like that.