I noticed on my morning inspection today that the little plastic ring around the passenger side axle is crushed and split. Is this normal, is it a sign that something to wrong? Please let me know.

 

Funny that no one has answered your question. The little plastic ring is a dust slinger and is used to keep junk out of the front axel tubes. The fact that it is split is really of no concern. Ususally there is more clearance between the slinger and u-joint ears, but maybe something got up there and pushed it over. The only other thing that could cause that is if the front half axel is moving in toward the diff, but I don't think that can happen. But it is good that you inspect things, especially the front axel. Check out the c-clips on the front u-joints while your there that I know is a problem. Hope this helps.