I think MikeQBF hit the nail on the head. The serpentine belt and possibly the tensioner is the problem. One belt drives everything on your E so that explains why you are getting the indications you are when you drive through water.
Yeh believe you guys are right. I heard a very slight/quick squeal this morning when it happened again, and I thought,"BELT!" Thanks again anyway for the quick response and idea. I really love this Forum. It's full of all the stuff you need to know.