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Greetings from New Zealand, My Darmah 38mm Marzocchi front forks clicks when the forks change direction(up and down) i suspect it's the damper.
Any ideas?

You will have to take them apart and inspect the internal components. Disassembly is not too difficult and parts are available. Check your steering head bearings too, too loose will make noise over bumps

I stripped down the Forks...Does this seem right?
Does anyone have the original length of the spring?

is there a long shroud over the main fork spring? That was used to minimize that clunking. Perhaps yours has been removed and that the issue. The original springs were a bit smaller OD than they should have been. If you were way low on fork fluid you would get the clunking. Headset bearings too loose or worn out will give the same sound.