300D water leak

Hey folks,
A friend has a '83 300D. It has developed a water leak visible when looking under the front bumper. It's leaking 3 or 4 drops a second off the front-bottom of the motor. Crawling under the front with a
flashlight reveals that the water first appears on the block from behind the lower rear harmonic balancer/pulley assembly. I simply can't tell where the water originates above that point.
The water pump hole is dry and shows no evidence of seepage that I can tell. All visible hoses appear water tight. About an inch or so directly beneath the water pump it looks like there is a bolt hole in the front of the block. This hole does not have a bolt in it. An inch or so below the "bolt hole" there is a small wet spot but I can't determine the origin.
Anybody encountered anything like this? We are going to remove the radiator and start unbolting things tomorrow. Anything in particular to watch for? Sure would appreciate any insight.
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Tom Mutas wrote:

Ok....before we started working today, we used better lighting to hunt for the leak. It appears that the water drops are falling off the bottom bolt of the water pump housing. This is not the water pump pump itself -- it is the housing bolted onto the block that the waterpump seats into.
We pulled the fan and waterpump pulley assembly. We pulled the water pump out of the housing and can see no discoloration indicating a leak. In fact, the water pump looks new. We were going to pull the waterpump housing off the front of the block but the bottom bolt is partially obscured by the harmonic balancer/pulley assembly.
What type of puller do we need to remove this harmonic balancer/pulley assembly? If we need a standard crows-foot type puller -- what size bolts will we need?
Sure would appreciate any pointers.
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Rotate the engine so the timing mark is pointing to around zero. Remove the 6 bolts in the center of the pulley. Remove the pulley and the harmonic dampner. It will pry off easily. LEAVE the center bolt and hub alone! Paint a white line at zero on the inner hub so when you rotate the crank for the bolt to line up to one of the cutouts on the hub, you can turn it back to zero before you put the dampner back on....
http://www.detali.ru/cat/oem_mb2.asp?TP=1&F 3193&Ma7%2E952&GAr2%2E120315&CT=M&cat3&SID&SGR5&SGN

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