48Dodger,
Yes I bought new shackles with bushings, but since they fit loose, I thought maybe I was missing something.
Dodgeb4ya,
I think you are right on, with the lack of lube, the bushings were rotating in the spring eyes and opened them up some. The bushings don't just fall into the spring eyes, but when I tighten them up they they still have some play in them. Since I am not doing a restoration, and it wont be driven much, I will have to decide if I should rework/ replace the leaf spring, or just live with it.
Thanks again, you guys have been very helpful,
Dom