Pardon my stupidity, but I will explain the best I can.

Our outdoor hose has a small "drain" hole on the bottom side. When I turn the water off (with the hose attached) water discharges out this hole for a few seconds.

The plumber described it as kind of a pipe within a pipe that helps keep it from freezing in the winter?

Well it started leaking out this hole last year. The plumber came and replaced the gasket but said it might not hold and the whole assembly may need replaced. This would involve cutting a hole in my wall to get to the pipe inside my house.

Well the fix held until this year and now it is leaking again.

My question, can I just "plug" that drain hole or whatever it is called? I can always shut the water off to that faucet in the winter and drain it to keep it from freezing.

Thanks!

Here is a photo of the faucet...

http://i320.photobucket.com/albums/nn348/webebuyers/faucet1.jpg

Sure, you can plug it during the summer months, but definitely remember to unplug it and let it drain before winter. Or just replace the complet faucet and install an access panel where you cut into the wall.