There is only one problem I see: the small hose on the blower motor is the one that goes to the SAS valve and the way the blower motor is mounted in the bracket on the wall - this hose points straight down into the nipple on the blower.

I don't see how drilling a hole right after where the hose connects is going to make a difference. Gravity will pull any water down right past the drilled hole.

Now if you rotate the blower motor 1/3 of the way around (so that the bolt holes still line up with the bracket) you can make the small hose (going to the sas valve) pointing in a downward direction. Now if you drill a hole in the nipple this would be ideal. Any water would settle right where the hole is.

According to volvospeed there is no slack on the hoses. He mentions not to cut off any or it won't fit and a new one will be needed. So I doubt rotating the motor will work unless new hoses are made.

Alternatively, if you drill the hole down further on the motor. The hose nipple wraps around the motor almost in 360 degrees then the hole would be on the bottom.

Where exactly did you drill this hole?