Paul .... The water pump has three bolts holding it. Two with the gasket that seals the water opening and a third in the upper right. You probably forgot to put the spacing washer between this part of the water pump and the block (item #30). Without the washer, the gasket will not seal. You can insert a washer by loosening the bolts and then sliding it under the edge.
With the washer, the leak will stop and so will the water around the crank shaft.