Rowdy-Yates, just go ahead and replace the waterpump seal. It is cheap and will eleminate that problem, cause if you have not done it within' 5-6 years, it is more than likely on its way. I would also replace the oil crank seal. You can do both very easily and it is pretty cheap. I can tell you now that the spooge is from jetting.
Mike is right, but I would go ahead and replace both. But, a pressure test is good anyway. If you drain the oil into a pan and let it sit for awhile, does bubbles form or does it start to seperate? That would mean the waterpump. If you dip your fingers into the oil and it is runny, that is also a waterpump seal. If you dip it into the oil and it spreads with little tiny shavings of metal, that is the clutch.