Hey Rob, thanks for the reply.
The grade is fine. New home, and they have crazy swells away from the house. No plants, bushes or anything. On that side of the house, the drains run into a "big-o" that I burried, and drain at the end of the driveway.
Everything has dried up since I removed the studs/insulation/VB
(24hours). I'm going to chisel out a bit of the cove, then fill it in with some hydraulic cement. Hopefully it's as simple as that and then i'm back to building as appose to ripping out. But i'm glad I found it now, rather then later!