>Can also be caused by an oil leak - if oil is leaking on to something very 
hot
>like the exhaust system it can burn there (it is usually pretty obvious 
when
>this is the case as the smoke will come out of the engine compartment 
itself,
>instead of out of the exhaust pipe).  Another symptom of burning oil is 
that
>a gas engine will often smell like a diesel.

Can tell you stories about leaking heats on an aircooled ... dripping oil 
onto
the heat exchangers ... got big smoke behind the van ... caused following 
drivers to
flash lights, thinking the van is burning ...

>The question to the original poster is:  did the water droplets stop coming
>out after the car warmed up?

Or do you get air bubbles into the cooling system? Watch the high pressure 
tank
when the engine is heated up.

Helmut
'80 Camper