Al,
  The first question is whether it is the steering rack or the suspension.
Either can make your steering squirrelly.  How did they make the
determination?  Did they drive it?   Did they explain what they meant?

A re-built steering rack with solve the problem if it is a steering rack
failure.  That will run around $400USD plus freight, core charge and front
end alignment.  Moist likely it is the rack but it is hard to tell over a
computer keyboard!!

If it is indeed a suspension problem, it is most likely a rubber
deterioration problem and possibly including upper or lower ball joints.
The parts are not all that expensive, but replacing all those little rubber
items can be time consuming and thus labor intensive.

If the Inspector did not give you and indication of where the problem lay,
then you either have to lift the front end to see if you can find the
problem or go to a Jag guy and have them do it.  Contact someone in JANE and
see who is nearby that can help.

The other alternative is to register the car in a State where they don't
inspect cars that old.  I keep my 1967 saloon in top condition, but they
eliminated all inspections for anything pre-1970 and only pat anything
pre-1995 on the hood and let it go. (lights, horn, tire tread and that's
it).  Here they passed my '88 Jag with a steering rack so bad you had to
turn the steering wheel and 1/8th of a revolution before the wheels moved!!
Needless to say I didn't drive it much until I replaced the steering rack
and the rubber bits.

Webserve

One more reason not to live in the East. MOVE!