One last time, the leg, exhaust housing, mid-section, whatever you want to call it, fills up with water when it is running. It fills up with water that has gone through the engine and done it's job. You are seeing only part of that exiting water. The rest of it is going out through the hollow propeller hub, along with the exhaust.
I repeat, the water squirting out forward is a drain hole. If it were not drained off, that filled exhaust housing would sit there, full of water, during storage. Maybe even freeze and bust in cold climates.
That other flow of water from the lower mounts area is from large drain holes, whose job it is to drain off water that has escaped the water pump housing, from the hole that the drive shaft passes through. If it were not drained off, it would rise up in the drive shaft isolation tube and overflow out the top or damage the engine.
If you have all the parts and seals in place, everything is normal. On that score, you will have to tell me if you have it assembled correctly. I can't take it apart and look from here.
