I ended up putting the engine back into my boat. I ran the engine directly off my water hose and didn't leak. Maybe it was the 1 gasket I replaced on the riser that fixed it or possibly the fresh water line had a leak. Its all speculation now.
Now I need to align my engine, install a water pump kit in the lower unit, new oil in the lower unit, fix the starter solenoid that I broke when pulling the engine, and replacing the trailer axle I bent today. Good times