If your header "t" is worknig properly and your water is adjusted right your headers should "dry out' after a short time of idling ,call if I can help you with this , RE the water leaks The most likely leak sites are the intake (epoxy) , the transom adaptor gasket and oring seal and the steer tube seal/bushing . Generally if the HH cover and or the packings are leaking heavily you'll have some performance issues as well as they are on the suction side of the pump as mentioned the best way to find a lower elevation leak in a boat is to put water in the bilge and observe if we can help with tech don't hesistate to call Tom