It's a pretty easy job. I done 4 or 5 over the years. Around here the lines from the tank to the hot and cold pipes usually have a section of flexible copper pipe with threaded fittings. Might not be able to use flex gas lines depending on your jurisdiction. Denver requires solid lines. Cross the city line to Aurora and flex lines are required.
The drip might be condensation depending on the conditions.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13