I have just discovered the following from 'the google':
Located on the side of the regulator bonnet (the cone with the adjusting screw) is a small hole. This is the Weep Hole If the diaphragm or seat cartridge inside of the regulator is damaged you will have Co2 leaking from the hole. It may leak constantly or only when the regulator opens.
To test for this problem first, turn off the Co2 at the tank. Loosen the set screw on the regulator bonnet (counter clock wise) until it is loose.
B) Remove the regulator bonnet. Their may be 4 screws (Cornelius) or the bonnet may have a hex molded into it. (Norgen, Tap Rite, Chudnow). As you remove the bonnet counter clockwise, remove it slowly so the diaphragm and spring assembly do not fall out.
C) With the bonnet and diaphragm removed you should see into the regulator body. In the center of the body is the seat/cartridge that allows the Co2 to be released.
D) This next step you will need to be careful with. Your Co2 bottle should ALWAYS be secure. With that safety note said. Next, slowly open your Co2 tank valve. You should NOT have Co2 being released from the seat/cartridge. If Co2 is leaking out then the seat/cartridge will need to be replaced.
E) Inspect the diaphragm for worn cracks. Many times if the seat/cartridge is damaged the diaphragm will be damaged also. And the Co2 will leak out of the Weep hole on the side of the bonnet.
I followed the test above, and at step 'D' had CO2 leaking from the seat/cartridge.
At this point I am assuming my regulator is toast. Unless someone has a better idea, I will be picking another one up in the next couple of days.
Thanks,
Ken