need a little help

[twiztid_juggalo]

I have an 06 Xb that has Tein S-techs installed with stock shocks. Recently I have noticed some kind of oil by the back tire on passenger side. When I looked under the car it looks like it is coming from the upper shock. Has anyone heard of this? Is it a bad shock? Any help would be great. Thanks.

[UV7]

Yes, it is VERY likely that you have a blown shock. The stock shocks are under added strain when the vehicle is lowered and don't seem to last as long as they would at stock height.
I recommend replacing the rear shocks with Monroe Sensa-Tracs for a Toyota Echo. Monroe's part number for these shocks is 5987. They are sold for around $35 individually at most auto parts stores, but I would recommend going ahead and replacing both at the same time rather than just opting for the one.
The Echo Sensa-Tracs will not only offer a bit smoother ride, but they also collapse about an inch shorter than the shocks for the xB, making it even less likely that you'll bottom them out.
If you also want to get another 3/4" of drop up front, you can swap the front struts for those for an Echo as well. The spring perches are a tiny bit lower on the Echo struts which is what gives the extra drop on the xB without a loss in ride quality.