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Window air conditioners have both an inside & an outside blower/fan. The inside is a blower wheel & the outside is called a slinger fan. It's called a slinger fan because it picks up the water that accumulates inside the unit from condensation and "slings" it at the hot condenser making it both air cooled and water cooled condenser. It could be that the reason that you aren't seeing and water drip out is because it's all being slung onto the condenser where it evaporates. I've had units that didn't drip out any water but still worked fine. If you can stand outside close to the unit let it run for 30-60 minutes and then see if you can feel any water misting out from it. If you can feel that then you have your answer, the water is being slung.onto the condenser. Let me know what happens.....
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