Water Pump Question

Hi guys,

I recently noticed a lot of steam coming from behind the water pump pulley and decided to replace my water pump. The car seemed to be running very hot (my coolant temp gauge decided to go at the same time so I couldn't tell just how hot it was, however I was getting very little pressure in the upper radiator hose) I took apart the pump itself and it didn't look like it was bad to me, although I don't know what a bad pump would look like. Does anyone know what I should expect to see on the inside of a bad water pump? I don't wanna put this thing back together only to have to take it apart again because something else was the problem.

Also, I noticed a lot of gunk (dirt and stuff) on an area below the water wheel inside the pump. However, as there is no channel leading to or from this area, I don't see how it could enter the area with the water wheel and therefore the engine. My questions are

A.) What does a bad water pump look like on the inside or what can I do to a water pump when off the engine to see if it is bad?

B.) What is the purpose of this lower area (looks like a horn) and why does it have no channel to or from it?

C.) How this lower channel would be full of crud (is there something else wrong that I should be checking)?

D.) If the water pump is working fine and the gaskets were all set, where could this steam be coming from?

Thanks for the replies guys. I don't have a camera at my apartment, but I can get one from my house when I go there later on this week. There wasn't much rust there, so I think the seal wore out.

I checked the hoses first and the only hose that was bad was the lower radiator hose, but it was bad at the radiator connection, I appreciate the reply though, I wouln't of thought of the hoses as a problem. I only noticed the hose was bad because it was leaking.