Hey Murphy,
There is one thing for sure I would try to do before I got too alarmed. (see link below)
One thing you have going for you if this is the only leak ( doesn't sound like a head or head gasket issue from your description) is that the cooling system is only under minimal pressure (somewhere between 7-12 psi) and it doesn't sound like it's in a critical location.
I would certainly try to cold patch this block if it was me. Proper clean up and preparation is critical to the process but it's certainly not a difficult repair.
I have never had any luck hot welding a block. I have heard of a process by which you drill holes in the crack, drive in plugs, drill again drive another plug etc but if you have never had experience doing this the situation may get worse.
What you are looking for if you open the rad cap with the machine running at normal temp is bubbles of compression escaping from the coolant. This would indicate a head gasket or head crack problem. Quite often white smoke will appear on start up if the coolant can migrate into a stopped cylinder. When machine starts the coolant will turn to steam and exit the exhaust pipe. Doesn't sound like you have this issue to me.
Anyway here is the link for a cold patch block repair, have a look and see what you think.
http://forums.iboats.com/showthread.php?p=1554318