Valve cover gasket + liquid flowing tailpipe....eh?
 

Okay so I've been inspecting my car the past 2 days, and I finally just noticed (literally like 7 minutes ago) there is a substantial amount of water flowing from the tailpipe whenever I start it up and move it. It looks like water, but oily water, and it's also dripping A LOT from the metal thing that leads up to the tailpipe. I know there is a part under the hood that was rigged (instead of replaced) to stop it from leaking oil. Could anyone tell me what that might be? I can`t remember the name of it, I know it was something like valve/cover/seal/gasket? And...if it is leaking again, would this possibly be causing the stream of liquid from the tailpipe/service light? Thanks guys!

The water from the tail pipe is more likely to just be condensation which is normal.

If the water from the tailpipe is black, you are burning oil. My 2000 SL1 does the same thing. I go through 1.5 quarts every 3000 miles. Just get used to it. I still get 39 MPG. Check the oil and drive the heck out of it.

I agree with Paul. If an engine is not properly warmed up and driven for at least 25 or 30 minutes, the exhaust system doesn't get hot enough to dry up all of the condensation. A valve cover gasket won't make any difference on a water leak. AND if you had a leaking head gasket, you'd be getting white smoke and a sweet smell out of the tailpipe. Take that sucker on about a 30 mile ride and then park somewhere and leave it running and then get out and check the tailpipe. I don't think you'll see any water coming out then.

white smoke...sometimes.
 

Okay so the leaky tailpipe is definitely a new issue, so that's why I was asking about the leaking gasket thing (sorry I'm not 100%) exactly which part it is. I've had this car for 6 years, and up until recently, it was great, and it all started with a blown head gasket. I'm super irritated that after spending so much money having a rebuilt motor put in, I'm still dealing with under the hood problems, as i feel like I must do everything I can to fix it myself, because everywhere I take it, i get ripped off...hence I'm still having problems. The car doesn't want to get up and go, it's having issues shifting gears, but it only starts to overheat once it's been idling for about 4 or 5 minutes, which is when i will start to see a light white smoke from the tailpipe. All of the fluid levels are good, it's not leaking coolant, thank god, but something is definitely not accurate. Does this sound like a leaking valve cover gasket? Or maybe a leak in the vacuum to the manifold? Im going to test for a leak in the vacuum, but after that Im out of troubleshooting. All the spark plugs & fuses are good.

No, a leaking valve cover gasket won't cause smoke out of the tail pipe. It will simply dump oil all over your engine. How long ago was the engine rebuilt and did you get any kind of warranty? It sounds like you've got another leaking head gasket to me, but I'm not there to visibly look at it, so can't be 100% sure. Start the car and let it run for a couple of minutes and get behind it and sniff the exhaust. IF it has a sweet smell to it, then you've got head gasket problems. Have you noticed your cooling fans coming on while it's idling? If they're not coming on then you need to check your fuses and cooling fan relay. If they check out, then you may just need to replace the ECTS and pigtail. Once again, I'm not there, so I don't know for sure. Oh, and the cooling fans should kick on if you just turn on your a/c. The car doesn't have to be hot to do this. Lack of power could be a restricted exhaust, such as your cat con or muffler breaking down. The shifting may be that you need to change the fluid and filter on the transmission.

That could also be a leaking intake gasket not sure on that motor but on my sc2 there is water jackets going though the intake that would also cause smoke to come out the tail pipe and lack of power. You might look at the oil and see what color it is if is a creamy brown color that means you got water in it which would more like a head gasket.

Geez, a rebuilt engine shouldn't be smoking at all. I would consult your shop that did the work. They had to warranty it for some time at least. A valve cover gasket will just make your engine oily, not cause smoke of any color.