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So, the a/c on my 'new' 528i works just fine, but I notice a loud sloshing sound in the dash when the a/c is running. Sounds like quite a lot of fluid splashing around in there. Is this normal? Is that the coolant (?!?) or perhaps condensation? Appreciate any insights.

I would think condensate. Probably the drain is clogged. It drains out over top of the transmission. I have used long tie wraps to unplug mine. Pain to get to.

Walt

Ah, that makes a lot of sense. I will see if I can find that drain (Haynes manual no help there) and check its status. Thanks!

I have had success clearing a clogged drain hole with compressed air.
Remove the large vent assembly from the top of the dashboard and stick the nozzle as far down there as you can. Sometimes a mirror strategically placed will help in guiding where to aim.

Here is a pic of the underside of the evaporator/blower motor housing that sits on the tranny tunnel behind the dash. It is upside down so you will never see this as installed, I posted this so you can have a point of reference as to where the drain hole is.

That pic is extremely helpful. Thanks, Lenny. Just to clarify, the drain is the large black hole at the bottom of the large flat pan and not the post between the blowers that looks like a screw mount, right?

Correct, and there is a grommet/washer whatever that seals it to the tunnel, as the water drains out onto the top of the tranny.

You guys were correct: the drain hole was clogged and condensate was sloshing around in there. Reaching that hole to clear it was not easy, to say the least, but we're all better now. Grommet appears intact. Thanks for your help!