It is coming out of the manifold labeled number 1 on ur picture. I will try and tighten the bolts and seeing if this works. Any other advise?

no, thats all i can think of... also check for cracks.. ive never run into or heard of a cracked manifold on a Series 2, but it is definately possible.., see if you can get your hands on a small inspection mirror (like a dental mirror) to see the back sides of the manifold and crossover pipe