[kountzecobra]

Probably thermostat housing gasket or timing cover gasket seeping a little bit. I would try to re-seal thermostat housing again first and file the gasket surface to make sure it is flat. BTW, you really need to remove those rubber caps and install a molded bypass hose. Water bypass is important when thermostat is closed. If thermostat ever sticks shut- then ZERO water circulation!