When you say water out of the exhaust plate, you mean the square holes at the base of the powerhead? If so, those are exhaust relief openings, and water out of there is normal. If the plugs are dirty, there is likely no water infiltration, so leave the exhaust covers alone.
Yes, that's the place.
This morning, I ran it for a few minutes. Then, like always, it starts up with the miss after about 5+ minutes. It's a hard miss, like it's only running on 2 or 3 cylinders. It'll last a few seconds, stop, and then start again. Eventually, it'll stop running altogether.
I pulled the plugs and looked at those, again. #3 and #4 look cleaner than #1 or #2. 3 and 4 didn't appear to have any oil on them like 1 and 2 did. Again, once started, it runs okay for about the first 5 minutes, then it starts up with the hard miss.
Got to looking at the exhaust cover, and it looks scorched (the paint) in the area where #3 exhaust is located. Also, while running, I noticed that water was being squeezed out of the exhaust cover in the rear about midway. I posted a link to a YouTube video that I uploaded, and where I have my finger is where it's happening. I panned over to the spark plugs to show how far up the exhaust plate gasket that it's happening.
My thoughts are this: If the exhaust plate gasket is leaking like this, then chances are the inner water jacket cover gasket is probably worse, and water is making it's way into #3 and #4 cylinders (I'm thinking more 3 than 4) through the exhaust ports.
One other thing: While this hard miss is happening, I've had the timing light on each plug wire. The flash is steady and strong for each plug. Personally, I believe it's taking 5 minutes or so after the 1st startup for the water to get to the level where it's affecting the 3 and 4 cylinders.
Tell me I'm wrong, but I have a feeling that I'll be pulling that exhaust cover in short order.