Thanks everyone,
The intake manifold was cracked and warped near one of the O-rings and based on the discoloration around the area, this was where the leak was coming from.
I replaced the intake manifold ($149) plus the lower gaskets ($20), fuel injector O-rings and also replaced the thermostat since it was out anyway and it now runs GREAT, no leaks!!
Although now the engine now runs hot. about 250, (redline is 270) thermostst is OEM 195
as an added note I also replaced both the temp sensor and the temp switch since I damaged the connectors trying to get them out. the are in the correct position and the connectors are attached.
Could this just be an air lock in the sysytem, the wrong sensor/switch (I checked the part #'s twice and both seem and look OK)
or did i miss something altogether?