Mine is leaking under the timing cover, near the WP. The shop quoted a price of $11XX.00 to change it. Yea right, the cars hardly worth that, so I am going to try this new sodium silicate based block sealer called K&W Block Sealer.
I have google'ed a lot of positive results on it. It is supposed to be the best thing going. The silicate turns to a glass and seals like nothng else according to what I've read. It talks about the hot exhaust gases burning the silicate and turning it to glass, so I am not 100% sure it will work on an external leak. I figure it's worth $6 to try it first though. What can it hurt?
Here a a couple links to info:
http://www.allpar.com/fix/cracks.html
http://www.carshowtomt.com/tc/Welcome.html?article=Squeaky__Rusty_Brakes_and_Engine_Woes