Water pump issues with '91 200hp rude

Hey guys, just changed the water pump and I noticed something I haven't seen before. I put the muffs on and water was comming out from around where the shifter linkage is. Is that normal? I have attached a picture. It trickles out with the muffs on and the engine off, and splurts out pretty good when the engine is running? I am thinking maybe the downpipe is cracked or the seal is gone or something?

http://i128.photobucket.com/albums/p...r/DSCF1144.jpg

Did you put the grommet in the tube and remember to put the o - ring under the impeller cup? And sure that you're in the H20 tube.