I didn't catch that you said base of the torch lead, not base of the torch. The hose that comes out of the torch lead is the water return, so for sure you have it hooked up wrong. It's is not intuitive, but it should be documented in the manual pretty well. Be sure to flush your contaminated argon hose with clean water, then blow it out with low pressure air until it is totally dry before you try welding or it will give you fits. Moisture and TIG do not mix at all.
Long arc, short arc, heliarc and in-the-dark!