wow you can see the fsr bolts from the pic? lol. the seat was indeed too high. The saddle was not very comfy, and the fsr bolts are now nice and tight.

Changes from this pic to current bike:
New crank set: 2008 shimano XT
New Breaks: 2008 Juicy 7 185 rotars front and rear, though im going to throw an 203 on the front very soon
New Pedals: Welligo B-25 flats.
New Rear Rim: Single Track.
New Rear tire: Hutchetson Barricuta.. not very satisfyed with it.
New Saddle: WTB Pure V. very comfy
New Grips: Specialized lock on.

 What it needs to be done:

New Fork: Fox 32 Float R... RC if it even exists.
New Tires: Maxxis High rollers or Kenda Navagle Stick-E 2.35's

 your seat is too high and I sense a crankset problem...

 is that saddle comfortable at all?

 hmm, have you tightened all your FSR bolts?