Chris

I have an88 740 gle wagon and have a leaking sunroof as well. I also had this foam block ( but mine was jammed in on one of the sides) that looked as if it was impeding the opening and closing of the sunroof .

I pulled/dug mine out. not sure if it leaks more now but my leak appears to be coming from a lack of seal under the side rails that allows water from the outer drain rails into a inner ledge and into the car from the sides and motor area.

My drain holes are clear. I'm eventually going to caulk along outer drain rail hopefully keeping water in the outer dreian rails.

Mark
1988 740 gle 155k 5spd manny the Silver surfer