waverz,
I had a keg that leaked like that.
It was a toss-up to try and repair it or trash it.
I thought I would at least see what the story was.
Cut and ground away the rubber at the base of the post and there was a small crack.
Dremel tool roughened up the crack and silver brazed it.
It brazed up fine, I'm still using the keg.
Regards,
John
PS: If you do not want to repair it, bad kegs can be made into great charcoal/briquette fire starters chimneys.