Well I solved the issue myself, but thought I would post for anyone else with similar issues. The drum bearing are shot causing the drum to touch the (new) heater and cut through it, causing the earth leakage when its full of water. So now I am up for another new heater plus drum bearings (around $250 total) and a half day to strip it all down and replace the bearings, assuming the bearing holders are still OK. For $629 I can buy a new one…. Wife said buy a new one.