The water is definately coming in somewhere around the bottom of the boot,
around the base by the bottom hose clamps. There is not any water running down the dripless, nor coming out of the top where the seal is. I checked the cooling hose and it's dry as well. I didn't see any rips on the sleeve, but without dropping the shaft I can't do a great inspection. I'm going to get a picture and post to better explain.