OK guys, I fixed the leak.
Here is a photo of the broken gasket:
http://internet.cybermesa.com/~bludevil/BrokenGasket.jpg
It literally was pushed out of its two surfaces!

Here is a close up:
http://internet.cybermesa.com/~bludevil/GasketDetail.jpg

What could cause this? Now the gasket I replaced it with was an original
thick gasket but notice the broken one was paper thin! Maybe it wasn't
squeezed enough?
Also I replaced a head gasket a few months ago when in San Francisco it blew
out. Maybe compression leakage pushed the gasket out?

In any case, this is the 4th gasket I have replaced since the rebuild!
Obviously the gasket set included with the engine was deficient.

Comments?

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Rachel's Vanagon Page