Ok I searched on ways to fix this, tried baking the light and then prying it, didnt work so well. I bought one off ebay and added more sealant around the whole thing. still fogging. now my thought is to take it to the dealer, wondering if anyone knows how long a warranty would be in effect with something like that?

4/50 original warantee should cover it otherwise your SOL

Ok I searched on ways to fix this, tried baking the light and then prying it, didnt work so well. I bought one off ebay and added more sealant around the whole thing. still fogging. now my thought is to take it to the dealer, wondering if anyone knows how long a warranty would be in effect with something like that?

Your dealer will cover it if you're under warranty. If not you can figure out where the water is pooling and drill a hole to release it.

In terms of searching...

http://www.rx8club.com/showthread.php?t=103811&highlight=water+tail+light
http://www.rx8club.com/showthread.php?t=137385&highlight=rear+light
http://www.rx8club.com/showthread.php?p=2287478#post2287478

You might want to try some different spellings...

I drilled 3 holes in the bottom of mine and it worked perfect. No fog or water accumulation.

There is a new gasket design out that will properly seal the tail lights. Did it myself as I was out of warranty... gasket was something like $45 for a piece of foam from Mazda, but haven't had any issues since then (about a year ago).

I have an 04, so I dont know that I am still under warranty. Where would I drill the three holes?

If you are under 50k miles, you should still be covered. If you arn't, buy the gasket and do it the correct way. Easy to do, just takes a few hours to let the inside of the housing dry out.