I know there will be mostiure with heat, and it is mostly noticed when first turned on.

However shuld water also be coming out of the bottom of the muffler? Or is that most likely condensation from the muffler itself?

You may have a series of pinholes rotting their way from the inside of the muffler, out. Condensation under the pressure of exhaust may leak through these pinholes and make the muffler look like it's "sweating" wherever it's lowest points are. Naturally, water will drip from the lowest point it can find. Also check to see that your u-bolts holding your exhaust assembly are torqued on *tight* to ensure a good crimp. If you see water leaking, it's a sure sign that exhaust is leaking. You don't want *any* leaks along the underbelly of the truck, as this could lead to asphixiation. Good luck!

You may have a series of pinholes rotting their way from the inside of the muffler, out. Condensation under the pressure of exhaust may leak through these pinholes and make the muffler look like it's "sweating" wherever it's lowest points are. Naturally, water will drip from the lowest point it can find. Also check to see that your u-bolts holding your exhaust assembly are torqued on *tight* to ensure a good crimp. If you see water leaking, it's a sure sign that exhaust is leaking. You don't want *any* leaks along the underbelly of the truck, as this could lead to asphixiation. Good luck!

That would be a bad thing.

The muffler probably has a drain which is good thing. It allows the trapped water to drain out instead of rotting the inside of the muffler.

Water coming out of the tailpipe is normal.