Your picture looks familiar. Something similar to this happened to my peach tree last year right before it died. It was due to over watering. Apparently I had a raised pond next to the tree and it sprung a leak saturating the soil around the tree during its growing season. It didn't help that I also have clay soil which retains a lot of water and my peach tree was planted in the lowest part of the yard. All these factors worked against the tree's survival. The moisture level was too much for the tree to handle and the roots started to rot, eventually the leaves became yellow and shriveled. The fruits stopped growing in size and slowly became dry and shriveled as well. I stopped watering the plant once I figured out the tree was getting too much water but the damage was already done and there was no way to remove the hundred gallons of water absorbed by the clay soil which came from my leaking fish pond. The tree eventually died. Peach trees are extremely sensitive to over watering. Well drained soil is a must. If you have clay soil like I do, it's probably best to plant your future peach tree on a sloped part of the yard where the water drains away from the tree. Another option is to plant it in a raised bed to help with drainage. You could also mix sand in with your soil to make it less clay-like (which I find to be too much work). Also, keep an eye on the soil moisture especially during the growing season (spring through summer). If the soil is damp, the tree doesn't need to be watered. Good luck. I hope your tree recovers. Mine didn't.

jeepguy, I was thinking all the same things as fruitnut. One additional thing I would do is to seal that bark crack for the very reasons you mentioned. There is a lot of dispute these days over whether or not to seal tree wounds. There are commercially available tree wound sealers available, but I've found a caulking gun with latex caulk works well. Take along a wet towel and use your finger to rub it in, filling voids and sealing entrance to fungus, insects etc. Use a gray or brown color to not be unsightly. When I spray, I spray insecticide/fungicide good on those areas and after it has dried I apply the caulking/sealant. The bark will heal underneath and push away the sealant as callous tissue is formed. Like fruitnut said, the structural integrity is compromised on that limb, so baby it along for a few years and hopefully it will heal and knit up.

Trying to add the photos... http://picasaweb.google.com/dthrooop/MyPictures?authkey=Gv1sRgCLWr7KfQpbXgvAE#5328633260606697890 Here is a link that might be useful: Mexican Lime Photos

A dowel rod is a round piece of wood - like a pencil. You can get one at a hdwe store & sharpen it in a pencil sharpener. Alternately, us a 12" wooden skewer - they come pre-sharpened. * Move the plant to a spot where you can repeatedly and thoroughly flush the soil with water that hasn't passed through the softener. * Flush the soil up to 10 times with at least as much water as the volume of the container the plant is in. You cannot overdo it. * After flushing, tilt the container at a 45* angle and wait for the container to stop draining. This drains a considerable amount more water than allowing the container to rest on its bottom. * After draining has stopped, remove the plant from it's pot and set on newspapers to drain. If the plant is small, a few hours is fine - if large, allow it to rest on the papers over night. * With a utility knife, slash deep vertical cuts into the root mass and an 'X' on the bottom. Alternately, you can remove an inch or two of the roots/soil from the bottom. * Pot up into a slightly larger pot and fill in around the roots with a soil similar to what you currently have in the root mass. Use a wick in the bottom of the pot if you are going to be able to lift the pot above the collection saucer (best). Ideally, the wick will dancle 2-3" below the bottom of the pot w/o contacting the water in the collection saucer. (I know - a lot to ask) ;o) This wick will 'fool' the water into 'thinking' the pot is deeper than it is. Water will move down the wick 'looking' for the bottom of the pot, and droip off the end. This will go a long way toward eliminating the specter of root rot and allowing you to water copiously enough to flush the soil each time you water to help gurad against salt accumulation. * A few days after you've repotted, fertilize with 1/2 the recommended strength of Miracle-Gro 24-8-16 (granular/box), Miracle-Gro 12-4-8 (liquid/yellow jug), or Foliage-Pro 9-3-6 (best, but you'd probably need to order online) * Give it all the light you can, and try to keep soil temps @ 65-75* That's the standard plan for bringing Ficus back from the brink. I'm not sure how many it's worked for, but I know it's more than I can guess at .... lots. ;o) Best luck!! I'll be around if you still have questions. Al