Yeah in the one picture you can actually see water fluid coming out. Does this mean I need to rebuild my water pump and replace the seals? I was hoping to avoid having to do this! Dang it!!!

All you probably need to do is grind the end of the water pump shaft off just enough so that the end of the shaft is a few thousands below the surface of the impeller.  The rubber sealing washer should tighten up against the impeller instead of up against the end of the shaft.  Coolant runs under the rubber faced seal washer and coolant runs out of the weep hole.