[alchemy]

As said before, there is no water in the bellhousing casting. If it's coming from there, you probably have a REALLY cracked block. It would need to migrate all the way along that bottom surface of the block and seep up the bolt threads. Many other places for it to seep out as well. Can you see leakage coming out the bottom bellhousing hole, the one with the big cotter pin? Any water in the oil?