The water pump went out last year I am pretty sure. The thing didnt have any water in it that I know of. Its an inline six and I cant tell where in the world it is coming from. Is there a freeze plug on the back side of the motor?? Towards the automatic transmission?? I have no idea. The freeze plugs look good on the exhaust side. If it is behind the motor how in the world can i finaggle around in there to see?? Thank you so much for your quick reply. Yes it is just straight water that is coming out of the bell housing.
Well...of all the Ford engines I have rebuilt, the 300 isn't one of them! All the ones I ever had lasted over 250,000 miles and I never took them out of the truck.
I would imagine there is a freeze plug on the front and/or back of the cylinder head. Check there. Their could be one behind the torque converter (or flywheel if your's is manual trans) but I am not sure. Try a Google search or ask any Ford Mechanic that has been around for at least 10 years.
Fords also use those metal heater hoses that are bent to conform to the contours of the engine as they snake around to their desired location. It's possible that one of these has rotted away somewhere between the back of the engine and the firewall, and leak down, around, and into the bell housing.
Good luck. Let me know when you find out what it is.