What I failed to mention in my above postings is that the P/S pump on higher mileage cars do end up leaking at some point, this being caused by the rubber seals hardening up. Since Steve's car is not a high mileage car , I would have a dye introduced to the P/S fluid and then determine if the pump is indeed leaking from the pump halves. Most likely it is one hose leaking or a combination of hoses. I believe if we go into the archives and perform a search on "500e and power steering" we will find that this a issue that does come up.

If warranty is going to flip the bill, why not have the preventative maintenance performed? Keyword is preventative.

Should have been more clear in my statements before.