It's normal to have some coils touching. Esp in the rear I think.

Does that side spring/shock assembly look any different than the other three on your car?

I know one guy's shock blew and he posted pics, and there was much more debris and grease in the assembly and surrounding area.

Also, if it blows, it should ride different...should be bouncing more.

I'm on H&R sports with stock shocks (going on two years...soon to upgrade) and I have some mild noise...but its the just the shock compressing over speedbumps (I only hear it when it's really cold and when the window is down).