Toilets, Sinks, Showers, Tubs and Disposals - Bathtub nozzle leaks at wall

I have a 3 knob shower setup--hot, cold, and shower/tub knobs. The nozzle where the water comes out sits just below the middle knob (shower/tub). Just about where this nozzle comes in contact with the wall, there is a spot where water drips. The spot is discolored and there is some calcium (maybe) buildup around that spot. Stranglely enough, when I turn the shower/tub knob slightly while the hot/cold water is off, it seems like the dripping gets worse.

I would like to know how this should be repaired. Is it a seal or something more difficult?

Any questions, please let me know! I appreciate your help!.
Thanks.
Ben

bennihaha, Welcome to the DIY Forums.
The problem is PROBABLY with the spout (nozzle). I would guess that you have the type that is held on to the supply pipe with an allen screw and "O" rings. Look under the spout where it meets the wall and see if there is a slot there. This is where the allen screw would be located. The "O" rings may have gone bad. If no slot, it is screwed on to the pipe. The reason it dripps when you turn on the shower/tub valve when no water is on is most likely that there is water still in the pipes freom previous use. You can test this by turning the knob and see how long it drips. I would say it will quit in a short time (when the water in the pipe is drained). You can purchase a new spout and replace the existing one easily. Good luck.

Thanks majak,
The research I did told me that one of those two situations was probably the case with the nozzle, but I didn't know if it might be something on the interior of the pipes that I couldn't handle. I didn't want to try anything without confirmation from another human being. I'll work on the nozzle part and report back.
Thanks.