I am about 38 wks preg. and starting early this morning i started heavy discharge of watery fluid. now i see little red and mild cramps?

Labor: You might have ruptured your membranes and getting into labor pretty soon

Your water: might have broken. Let your OB know NOW (or go to ER).

Call OB: your water may be leaking and you may be going into labor.

GO TO HOSPITAL!: Based on what you are saying your "water may have broken" and you could be nearing delivery. I would get check out soon! Best of luck, congrats!