In order to replace the lower ball joint I want to remove the rear lower arm in order to use a hydraulic press. But I cannot pull the bolt out, it is fouling the steering rack gaiter and steering arm within. The service manual does not say a word about loosening the rack. Anybody done this who could clarify? (And the front arm bolt is fouling the "X" brace. Who designed this? Grrrr!)

Rrrriiigghhtt, I found a reference in a pdf: "The XK8 Bible.pdf". It says the rack has to be dropped slightly.

Yes it has to be dropped slightly, but this is only four bolts. Not much of an issue. You can leave it hanging while you work. Also, make note of the orientation of the bolts for the lower control arm. On some years, these are eccentric bolts and affect camber, so make sure to place a mark to try to keep the alignment as close as possible to what it was.

I managed by just removing the larger diameter circlip from the bellows and sliding it out of the way with the steering on full lock.

Only downside is that the circlip is a one-time use.

I recently did all my front suspension components and I managed to remove the bolts by disconnecting the tie rod ends and manipulating them past the boots. As long as they're in good condition and not completely covered in rust and grime, it's an easier option, I think?