hard steering

I am rebuilding a 1987 XJ 4.0L and I have come across a problem with the power streeing. I have no assist when the jeep is running. It takes alot of muscle to turn the wheel in either direction. I have noticed p/s fluid all over the underside of the jeep. The power steering pump is dry but where the high pressure and return lines meet the steering gear box is completely soaked with fluid. I was wondering if a ruptured line would cause such difficult steering. Just wondering if it's the lines or is the steering gear box history?!

You've answered your own question. No fluid. All the fluid is on the outside of the engine. You have a leak, probably at the high pressure side of the pump. This MAY mean a defective pump, but most likely it is the valve that screws into the outlet side of the pump. You'll have to remove the pump, and rebuild it, and while you're at it check your fluid lines as well. You can purchase the rebuild kit, but you might actually be better off to go to a salvage yard and pick up a used pump - or if it's in your budget, go to one of the discount auto parts houses and buy a new one. I seriously doubt the problem is in the steering gear box, but may be in the connectors going to it.

I agree. Your PS pump is toast. Often, if you run these pumps dry, even for just a few mintes, they are ruined anyways.