Fridge Help

I have a fridge I am hoping to use as a kegerator, however, it seems to be leaking from the bottom. After taking some of it apart, it appears that condensation is building up on the cold line that runs from the compressor up to the freezer compartment. This condensation is building up and running down the line, eventually it pools up in the bottom and leaks out to the floor.

The insulation around the copper line is loose and really thin in some spots where the back cover smashed it against the line itself, and there's an 18"+ section that isn't insulated at all near the compressor. Do I just need to replace this with some new insulation, or is there another problem I don't know about?

Some pics:

Here's the full view of the line, you can see the rust buildup on the clamp about halfway down.




This is where the line enters the freezer compartment, those foam blocks are removable and seal the hole (barely) around the line.




Halfway point, you can see the moisture on the fridge, also, the wet area on the insulation is a really thin area.




This is the compressor compartment, you can see the large length of uninsulated cold line. The water runs right down to the elbow and drips straight down.




Finally, here you can see the wet line, and the area where it pools up below.

Is there a drip try on the bottom of the fridge near the compressor? You may just need to reconnect the condensate line to the tray.

There's no drip tray under the compressor and that line.

If the suction line is sweating it's a good indication that your system is operating properly. The suction line returns the cold, low pressure refrigerant vapor back to the compressor. When the temperature of the refrigerant in the suction line drops below the dew point temp of the surrounding ambient air then the water vapor in the air will condense on the exposed copper line. The suction line should be adequately insulated along it's entire length back to the compressor.