Jeep bounces violently---PLEASE HELP!!

I had been a bit leery of the ride after a recent oil change/maintenance visit to a dealer, where the tires were rotated and the air pressure "checked". Turns out all four tires had almost 40 psi. Knot heads.
 
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Hmmm, what should I be running my 31's
Kind of a late answer but 30-31 psi or so at the most is about right so long as they have the proper Load Range C rating. Never inflate an automotive tire to the pressure on its sidewall, that is only its maximum allowable pressure which is never the correct pressure to actually use. :)