I just put in my DMH e.cutout and made a video of it open/closed and in between - there was always alot of water spraying out. I know this is pretty normal, especially since its so humid here, but what I'm wondering is - is alot of water out of the exhaust any indication of running rich? Or does that have nothing to do with it...

 

Is your cutout after the cats? I know that besides the humidity, water is a byproduct of the catalyst.

 

its normal

 

indication of a well running engine, and one reason why they don't like us at the track or any FI car for that matter. If you don't clear the exhaust out (by small launchs or revving the engine) you will leave a puddle on the starting line.