SOLVED!!!
I brought the beast back in last week while it was raining, you could feel the carpet getting wet again. I finally convinced the dealership to pull the carpet and try to drive the car to find where water was entering. Before they road tested the vehicle, they found the Evap drain line was cracked and therefor voiding water into the driver foot well any time the A/C ran. They replaced the hose, dried the car out and returned it. I have since driving in the rain again and I can say with a big @ss smile that the car is dry! I rewarded the car with a full detailing including glazing, debadging and some old fashion polish lovin'. Looks REALLY good!
Search words: Evap, Evaporator, Evap Drain, A/C issues, Leak, standing water, Wet Carpet, musty smell
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'08 E70 3.0
'98 E36 M3 Convertible
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