If its a blown head gasket or cracked head try this sealant called "Blue devil" its 70$ a quart. The stuff is no joke, I found it at napa.

http://www.autobarn.net/blue-devil-e...te=google_base
Check it out, ive heard first hand from mechanics that it works.

 

Its something that I am comfortable tackling on my own. Its would not be the first motor I've had apart. Just was not expecting the headache. My leak seems to be coming from above the gasket, but not 100% certain.

My big concern now is that the head may be cracked. If thats the case...the 250 dollar refresh job now becomes 800 for a new re-manufactured head.

 

If it were mine, I'd be tempted to just re-torque the head, clean and monitor for a bit.
After all, it's a Jeep, mine seems to slowly weep a little oil out of nearly every mating surface and never even goes through more than 1 quart between oil changes.

 

I personally cant take that chance. My luck is that I will be 70 miles from home with the kayaks or boat, and I will be stranded as the gasket totally pops. I hate leaky gaskets and seals.