Water Heaters - Water dripping on burner

I replaced the T&P valve a short time ago because the drain pipe was leakin outside of the house. Everything went fine for about one week. Then we ran out of hot water. Pilot light had gone out. I noticed a large puddle of water on the basement floor. After taking out int. and ext. door I saw water leaking onto the burner element. I relit the pilot light last night and there is no water puddling on the floor. Is this normal or does the water heater needs replacing?

jpugh13, Welcome to the DIY Forums.
You did not say how old the WH is. If it is over 10 years old, I would suggest you start looking for another unit. If the basement is cooler than the rest of the house, the puddle COULD have been condensation from the hot tank when it cooled down but it is really doubtful. Since the water leaked onto the burner, I would have to say it ran down from under the insulation. Could be a leak at an inlet/outlet nipple or the T/P valve threads. If none of those connections have "new" corrosion on them then it is most likely a tank leak. Good luck.

The water heater is nine years old. The basement is cooler but I do not believe it is condensation. I put teflon tape around the threads of the new T&P valve. The drip eveuntually extinguishes the pilot light.

Looks like it's time to shop for a new unit.