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fwiw what I've picked up is that the car rest on the leaf springs so the springs will set the ride height. The shocks are there as a damper so you don't bounce on the spring.

Yes, the leak is under the car. The main cause of concern is I've started hearing a new noise that seems to be linked to the power steering. I havent topped it off, but my guess is that the shaft seal is leaking. Just wanted to make sure it wasn't running dry till I could fix it.

How much below the top should it be? 2 knuckles or 3?

I'm pretty sure I've got a ps fluid leak. Is this where to top it off?

Synthetic grease. Fixed mine right up.