The noise could be your cam position synchronizer. This is a common issue. (Does it sound like a bird chirping or belt chirping?)
Water out of the exhaust is not a big issue if it is not a big white cloud along with it. Water is a by product of the Catalytic Convertor doing its job. Long idle times can cause water build up in the exhaust system.
The smell could be your Cat going bad. Is it a rotten egg or sulfur smell or something else?
My Rides: 2001 Taurus SES, 2003 Toyota Camry XLE, 2005 Chrysler Sebring Touring Convertible