I sealed the seams with RTV, painted the whole servo with liquid electrical tape (3 coats) and put a blob of RTV around the base of the servo horn.
The water found it's way in through the servo horn area. Every other seam was dry as a bone, but the bearing for the output shaft was wet as well as everything below it. It ran down inside through the potentiometer down the side of the motor onto the circuit board.
I'm not sure if the "pot" being wet burnt the board or the water on the board burnt the board. Either way, there are two transistors that are toast and a couple caps and diods that are fried.
Either way, it just goes to show that your never fully water proof when your dealing with moving parts.
On my savage, I made a o-ring out of bicycle inner tube to be gently squeezed between the servo case and servo horn. Just enough pinch to make a seal. I also lubed it with losi green slime so it wouldn't bind, but I did that after I dry fit it. I also sealed the seams with RTV and put 3 coats of liquid electrical tape on the servo's.
I've pretty much drenched the savage be it in snow or a garden hose to clean it off, and haven't had a water related problem yet.
I use balloons and electrical tape on my battery packs and my receiver. I wrap the balloon in normal electrical tape after the parts are inside. I do it to make it more resiliant to wear by vibration. Haven't had a hole in a balloon yet.
I tried the balloons on the servo's, but they are to bulky. Also, no matter what you do, there's a 50% chance you make a hole in the balloon when installing the servo screws to hold the servo onto the chassis.