I think I just answered my own question but figured I would post it for any future reference. I do have a leaking water pump...but it isn't the raw water pump. There are two pumps on the engine as noted in the service manual and out here in the forums. The raw water pump which is expensive and goes bad from time to time and the circulation pump which is much cheaper and very occasionally goes bad.
Raw water can be rebuilt...circulation pump can not..besides I found a marine replacement for just under $60...
When the circulation pump or gasket goes bad water will leak from the gasket down the front of the block and spray off the raw water housing/pulley (on a 3.0 L VP; for all others it would be "when present on the crank").
When the circ. pumps internal seals start to go bad water will drip from the 'weep hole(s)' on the pump to indicate that the pump needs replacement...but they will drip right on down to the raw water housing as well and go spraying off the pulley, which is why I assumed it was my raw water pump leaking...it wasn't. Got a flashlight and got it up to operating temp, watched the water drip from the weep hole.
So my raw water pump is golden but my circulating pump is leaking from the weep hole. Gonna replace it after the weekend and I should be good to go for years to come.