Don't worry about water in muffler, it's condensation form the engine running. Of course if youour coolant level keeps going down then it may be head gaskets. You really need to see which hose is leaking to fix the p/s leak. Also the A/c lnot working is because it probably leaked out and that should be repaired as well as it will leak out again.
Thursday, July 8th, 2010 AT 6:34 PM