[speeder]

Definitely NOT a doctor but that looks like a herniated plus ruptured disc. The small item could be a piece of the ruptured disc that has migrated to its current location in your spine and is most likely pressing on some nerves.

I only offer this free diagnoses because I had the exact thing happen to me in 2002 and seem to remember it looking like that on the MRI. It was very, very painful but micro discectomy from a top neurosurgeon put me back to right and holding steady 16 years later. Best of luck.