Update...Toyota elected to replace the entire center console with the radio/NAV system.
After that was done, it was noted that the keyless entry did not work. When they investigated that, they found standing water in the right rear corner submerging the wiring and leading to damage. They need to replace that wiring for a cost of $1700!!! $700 for parts. $1000 for labor!!!!!
Now how did the water get there? Toyota is claiming that there is a missing nut on a bolt in behind the tail light. This led to the tail light being loose and allowing water into the car.
The original theory was that an accident led to it getting loose. However, the only accident I had a was a very low speed collision with a tree backing up a dark driveway. This lead to a crack in the rear bumper. I had the bumper replaced nearly TWO years ago.
Toyota (the dealership) is claiming/theorizing that when the bumper was replaced, the tail light assembly was re-assembled improperly.
I am paying for the repair, but I intend to find out if the tail light was even touched when the bumper was replaced? Does anyone know if they would have to remove the tail light to replace the bumper?
Below is a pictures. More can be found here: http://www.msj3.com/2007/highlander_water/
Any other ideas?
P.S. I still don't know if the original issue is fixed. Toyota is claiming the wires affected by the standing water should not have been involved in the original problem. The car has been in the shop a total of 3 weeks for this problem.