My '98 CE collects water in the passenger side headlight. Besides looking terrible I'm afraid it will short out the HID bulb. Has anybody had experience with this problem?

Yeah... Unfotunately, its just a matter of time before failure happens....
Once you get moisture in there the entire unit has to be replaced!!!

This happened to me in 2001 while still under warrenty. Dealers know about it. All I said was I've got some moisture/condensation build up in headlamp and they replaced both!

I actually just noticed some on my passenger side unit recently, so I'll be fixing it again soon as well... Let me know what kind of prices your finding...

Found this post while I was doing a search for HID's since mine is about to go out. But my passenger side light had water in it when I bought it. I just rigged a clothes hangar and rag to dry it out. I did this to an Escort I used to own as well. Just get in there and pop out the turn light. I think I got to it from the wheel well. Rig the hangar/wire at the end so that it will hold onto the rag. Insert it into the empty turn light hole and go to work. You'll need to bend it a few times to get into all the places that has moisture, sorta like you're trying to unlock a car door that has the keys locked inside. A couple of times I had to grab the rag with my pickup tool http://shakyparts.com/cgi-bin/image/templates/9028lit.jpg when the wire dropped it. No water has returned, but now my passenger side light is yellow and dim. I don't think it is related to the moisture. But if it is, it took it over 1 1/2 years for it to affect the HID.

if you remove the head light and bake it at like 100 to 200 the seals will pull apart and it can be cleaned out and resealed. I have tried this, and it worked but it took a long time and the water is back. I'm just going to letit go out and then spend the money to get a new one.