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The condensation forms on the aluminum coldsink that sandwiches the peltier unit. The super cold aluminum condenses the humid air being blown by the fan, which then drips when it builds up.
Thank you, sir! I'm planning the route for the condensation down to the dish of beads... I assume I could just collect it right at/under the coldsink then run it via plastic tubing to bottom.
That should work fine... I used a piece of plastic taped right underneath the coldsink, bent it to be slightly concave, which then led the drips into a tray of beads!!! Recycle and Reuse my friend! Good luck with your project!