There is also coolant leaking from that area albeit very slowly...
Just to the right of the first head bolt cylinder 1 to the inside

 

Can't quite tell what that is.

 

Gasket, of the head type? Wouldn't be uncommon, especially on a '97.

 

Yes, of the head type. If you look closely enough it seems like it is split....is that really possible for it to split like that so randomly? Hasnt overheated or anything in fact I just noticed. How hard a job is it to swap out the gasket? Frankly it looks rather simple and I am reasonably mechanically inclined just need to buy a torque wrench....one more thing to the honey-do-list. Are there any differences in gaskets or are they all the same for the 4.6 model? Sigh, research time/beer time

 

Its hard to see at least for me but I believe you are looking at a intake manifold gasket. If so they are fairly easy to change.