What do you think, coolant leak? That's my guess. Looks kind of strange though how it is gathering mid block. Maybe there was a little oil there and it's made a gooey mess. I can't be certain with the shop light I have but it seems to be coming from where the head meets the block between #3 and 4 cylinders. I performed a valve adjustment today and the number 5 intake was loose. All the others were fine. Then I noticed that my cam seams to be retarded. Note the close up...the mark is to the left of the "v" groove. Am I wrong for thinking that the only way for this to happen is for someone to actually adjust it so? What do ya think about this? Anyone else have similar situations?

Yes, probably a coolant leak from the head gasket. Our car weeps a little bit there too.

I think that the cam mark in that position would actually be advanced, and it's about where it should be according to the FSM (the "after adjustment" position). Was the timing mark exactly on the zero, and did you get it that way without backing up the crankshaft? If you rotated the engine forward then nudged it back to hit the TDC mark, the slack in the chain wouldn't pull the camshaft back with it.

I had a coolant leak on my last engine, at the back of the head. And an oil weep at about where your water leak is. Barrs Stop Leak might fix the water leak, it helped mine but it eventually came back.

Thanks for the info guys. Zed Head, I guess that would be advanced. I'm not sure why it's that way. I am a little confused as to why it was adjusted. I had a new head gasket put on in 1998. Don't recall anything about the cam timing. Would this or could this be a reason why it is so hard to get it to pass smog here in California because of the cam being advanced?

Thanks for the info guys. Zed Head, I guess that would be advanced. I'm not sure why it's that way. I am a little confused as to why it was adjusted. I had a new head gasket put on in 1998. Don't recall anything about the cam timing. Would this or could this be a reason why it is so hard to get it to pass smog here in California because of the cam being advanced?

The cam is where it should be. Maybe whoever put your head gasket on adjusted the cam as well, or it's simply an indication that your chain is in good shape.

LeonV, I agree. Which is also good news! Thanks.

Its a head gasket leak, i recommend you should change it asap. Also make sure the head aint warped. Mine was.