Thanks for the replies Tom and Larry!

It is a little comforting to hear that two of the forum's senior members are not leaning toward head gasket ($$$).

Larry - in the thread I quoted, MBDOC says that if you drive long distances at highway speed (I do everyday), that the condensation will evaporate. Is it possible that the condensation will remain even after long daily drives? Additionally, this is the first winter that I have experienced this condition.

Tom - anything else to check *besides* the PCV valve?

I'll implement both suggestions and get back to this thread with a result.

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1998 E320 4-Matic Wagon