hydra..im not sure if im right on this.im thinking maybe...your sway bar is upside down.

also it may bolt onto the top of a-arm bolt end.(you would need to rotate the cap end with the bolt threads to point up)
like i said im not sure and mine is off,but this warrants investigation.
either bolted on wrong side,or upside down,or both.
something just doesnt seem right. we need a pic of original setup.