In order to monitor operation, I removed both sides and even loosed the bottom panel (which can't easily be completely removed). I'm not sure, but it could have been the the main water connection was merely loose. My wife had me plug everything back in this morning so she could get her morning cup of coffee and I'm keeping a sharp eye out for any water.
As the unit filled today, i noticed that after the cup of coffee had been brewed, the unit automatically triggered new water to fill in the water reservouir. That operation did not cause any water to spill or leak. One thing to note however is that the input water line is rigth next to an "overflow" drain line which is designed to empty the water directly under the unit onto your countertop.
This design could be flawed somewhat in that the water intake is slightly left of the overllow line. Based on the water pressure, the water splatters inside the reservoiur and could find it's way into the overflow line. I'll continue to monitor this and I really just hope that the main water line connection had become loosened over time (from vibration everytime it kicks on to input water).
So it's been almost paradise and i'll update the review and like to get lucky here to avoid having to repair the unit.