Originally Posted by BillyBass
Is it around the plug put plumbing tape on it
Atwoods use a nylon plug, not metal. They should self-seal.
If it's a conventional heater, I'm wondering if it's the over-pressure, over-temperature valve. It's not unusual for them to drip if you've filled the system with cold water. The water expands and there's no place else for it to go but out the valve.