Pulled the motor back out tonight and unbolt the block from the strut tower. Figured out where it started leaking, just don't really know how. If you look closely at the photos below you can see that the top brake line looks to be brownish around the fitting. It leaked just enough to flow down to the bracket that attaches to the strut tower and just saturate the bracket. Thus eating its way through the paint. It must have really saturated that bracket area considering the inside of the wheel well is also bubbling. My only assumption is that maybe when I was lowering the engine in place that I somehow pulled on that line just enough to tweak the position of it and allow it to start leaking? While it is possible, I find this highly unlikely as I was extremely careful not to catch/scratch anything while lowering it in and I had a second pair of eyes watching things. Either way, only thing I know for sure is its just bad luck.. could be worse, could have happened after the car was all finished.
The real shitty part is if you look at the last photo, you can see a steady drip line in the paint down the frame rail and it ends where the K-Member meets the bottom of the rail. You can see rust has already started to form on the very outside edge... Looks like I have to drop the front suspension and take the K-member out all over again.
For peace of mind I ordered a new (low mileage used one since these are discontinued.) proportion valve/block and some brake lines that will be here this weekend if shipping is accurate. In the mean time I have pulled the unit away from the strut tower and wrapped it in a rag. This weekend I will start the sanding process and probably paint. Luckily its down low enough that it shouldn't be noticeable if its a shade off.
On the plus side, I have easy access to the rack bushings!
Onward and upwards I guess