You are absolutely right. As you describe your problem outside excavation is not an option. Install a good interior system along the slab wall, and make sure your discharge system is effective. This study on waterproofing is very good, you may find it helpful. http://www.extension.umn.edu/distribution/housingandclothing/DK7051.html

And exactly what problem do you suggest that will SOLVE?? No need to sharpen your pencil, because the list won't be very long.

The water must be stopped BEFORE it enters the house, not simply directed once it's in there.

If your problem is seepage, water only enters where the floor and the wall meet, a good interior drain system will work. Water enters a foundation when the water rises higher than the floor. A proper;y installed drain tile, whether place inside or outside the footer, will keep the water lower than your basement floor. If there are signs of water higher on the wall, cracking, effloresence, peeling paint, etc. then waterproofing, full excavation to the footer, is the best choice, in fact in my opinion always the best choice, but only if it's feasible. In your situation it would be cost prohibitive to try and waterproof that wall, I would use a water control approach.

Thank you all for the replies, but I'm a bit confused by most of them. Wtrprfr1 is the only one who addresses the fact that outside excavation doesn't seem an option for us unless we want to excavate all the walls that are NOT leaking and not excavate the one wall that IS leaking. It doesn't seem to me that would solve our problem, but are you saying it will?

Unless I've missed something... How would one excavate UNDER a 15' x 30' slab with a 3-story house on it to get to a leaky foundation wall that sits, very literally, in the dead center of the house footprint?

Thanks for your time,
C & J

I am in sorta the same boat as you. I have a basement that is is separated into two halves by an interior load bearing block wall. Block is obviously behind drywall... http://img214.imageshack.us/img214/9775/1000775dc7.jpg

I have seepage all along the entire length on the cold or cove joint as well. It only happens when we get a couple of inches of rain in a very short amount of time. We just got 2+ inches of rain this past Sunday and Monday and I had no seepage.

It also seeps in at the bottom of my poured concrete steps which lead to the garage. On the outside of the garage there is a concrete patio, deck and a room addition.

I feel ya