When I hooked the muffs up to the engine this morning and ran water through the outboard I noticed water coming from the middle part of the outboard like you can see in this picture, is that normal? I've never noticed it before...

Did you blow a seal/gasket?

Doesn't look right to me. I don't think mine does it.

looks like you are missing the lower left mount bolt.

Looks rode hard and put away wet.

If your talking about the bolts that mount the outboard to the transom then I'm not missing any of them, the left one just looks like its missing because its got black junk covering it.