Here's the situation:
(update: see http://www.30below.com/~davidd/jack/jack.html for a picture and some closeups of the plant).
For starters, there was white cotton-looking fungus growing on the surface of the soil. I removed this when repotting the plant, and it has not since returned. The 'leaves' (I'm not sure if that's the correct terminology, but I'll use that for this message), were all drooping down; most of them were 'creased' where they were resting on the side of the pot, creating very thin areas near the crease. Many of the leafs were also very dry, folding inward, not nearly as full as they once were (by folding inward, I mean that where the center of the leaf could gently be pressed down upon before, now the sides of the leaf are in, or almost in, the way. A few of the leafs that used to be strong, full, and impressive looking, fell off when they were moved just slightly (I lost a few of these when moving it).

So, I have what looks like a "dried out" Aloe; a few good looking leafs on the top; there is one large one that's stil hanging in there, not creased, not too dried up. (picture will be posted soon) My question is:

Should I cut off the leaves that are mostly dried up? I figure they're drawing needed water from the rest of the plant, but they are also collecting sunlight, so I'm not sure what's the better thing to do.

A bit more history on the plant:

As I said, I recently repotted it, half of the soil in the pot looked like it came from the side of the road. The roots of the plant were between 1/4 and 1 inch.. Not very long at all, compared to my other Aloe. There weren't many roots, as well (Didn't get a picture of this).

Anyway, if you need to know anything else, let me know. I can post a picture of it, if that would help. I've found plenty of sites discussing 'overwatered, mushy' Aloes, but none discussing, 'dry, tough' Aloes. Any help is greatly appreciated, I hope we can help this plant out!

Thank you,

A very impressive photos display! That makes diagnosis a lot easier.

The heavy soil that your Aloe was potted in caused the roots to gradually suffocate and rot. That is why you observed a very small root system.

When roots rot, they no longer absorb water efficiently. So the leaves don't get enough water and they wilt. That explains the paradox of an overwatered plant looking like it is too dry!

The stunted new growth occured either because the growing tip was damaged at one time or becuase it is not getting enough light.

Aloe potting mix should be about half perlite mixed with a peat-based soilless potting mix. This mix will dry out quite quickly following a thorough watering, and that is what the roots need to become healthy.

A smaller pot made of terra cotta might also help the drying out process and will be gentler on the leaves that come in contact with the pot edges.