I took the covers off the front shocks to put in new plugs (ridiculously hard to do) and discovered a red sawdust pile on top of each shock. It looks like a hamster was living there but it isn't. There is no wet oil or leaking on the shocks under the car. They are the electric shocks. Any ideas? Anyone ever have that happen? No codes or warning lights. Thanks.

 

If they are anything like the XK8/R - sounds like the foam in the upper shock mount is deteriorating - here is a pic from my XK8.

 

Yes, that is exactly what it is, just a red hue. That should be an easy change out, just will take some time for each side. Thank you so much for pinpointing it for me.

 

Here is my XJ8 (X308) thread of how to fix that issue. Maybe you can apply it somehow to your S-Type 2000...:
https://www.jaguarforums.com/forum/x...2169af-266115/

My 2004 and 2005 S-Type have not had that issue yet.

 

Thanks Peter,
I will study it closely.