I recently came into a 2001 s60 that is great mechanically but the suspension has seen better days. i am getting those volvo clunks I keep reading about when taking off and slowing down. I have replaced the top mount and transmission mount and have some control arms and ball joints on the way, getting struts, sway bar links and wheel hubs next.
So here is my problem, on the passenger side the ball joint is scraping into the rim, at first it was only occasionally and only on left turns, I thought maybe it was a wheel bearing at making noise at first before I realized it was the ball joint. Could this be caused by the nearly non-existant bushings on the control arms or is there generally another cause for this?

Now for my other big problem. The lug bolts are killing all of my tools. I have been spraying them with wd40 "specialist penetrating spray" every few hours for 3 days now. I had to use a 7 foot fence post as a breaker bar to get the first 4 loose on the front passenger side, each one made an incredibly loud crack after a lot of effort but broke loose fine, i cleaned them up, put on anti-seize and replaced them.
The fifth one will not budge, I cracked 1 lug wrench, warped one and stripped 2 out. I tried an electric impact wrench, broke 2 24" breaker bars and 3 ratchets with the fence post and an extraction socket. I took it to walmart to pay for a tire rotation just to get it broke loose but they couldn't get it either. At this point the corners are rounded to the point that only the extraction socket will even get a grip on it without the socket backing itself off the bolt. I am wondering if I will have to pull the whole steering knuckle off with the tire, if that is possible, or is there a way just to break the end of that bolt off? Any tips or suggestions are appreciated.