Ah Someone else with the same issue. I too had the same problem when I first bought it. Here's what I did:
1. Remove the inside Air Filter located in the glove box. Instructions are here in this forum I think in the tech pages link.
2. Buy either the febreeze aerosol cans or if you can find a car deodorizer but it must be aerosol based and you have to have the ability to spray sideways. (I tried this stuff that must be held upright and has a lock tab but our air system is quite low and is actually lower than the blower itself so it wasn't pulling in the stream effectively enough.)
3. Get some zip ties that are large enough to hold the spray handle down until it's drained.
4. Start the car and put the recirculation mode on. Sit in the passengers seat, roll up all your windows and start the spray using the zip tie with the mist pointed directly down towards the front of the car slightly to the left directed at the inside of the compartment where the air filter was. You can see the blower turning in that area. You may have to fasten it there somehow but the mist should be entering the dark opening as that is the box containing the condenser/heater cores. (The white plastic opening is the external vent from the outside just below the windshield area. I wasted two cans of stuff thinking that was the right inlet lol.)
5. Turn the fan to maximum and close the doors. Let the aerosol can drain completely. It may work better if you find an actual deodorizer with Mold killing chemicals because what you are smelling is mold buildup of years of condensation sitting in there not getting out properly and/or improper usage of the Automatic Air Conditioning System. For example on a really hot day maybe 10 minutes before turning the car off switch off the AC and let it dry out in there (Realistically speaking of course if it's a 5 minute drive there's no point).
I honesty had a smell like a womans dirty V and had to repeat this process 3 times before it was completely gone.
There are other paid procedures that can be done with a special misting system. A Chevrolet dealership close to my home has a really cool aparatus kind of like a Hot humidifier but industrial and they remove the internal air filter and let the steam with some mixed in chemicals do it's thing. The car smells phenominal when you pick it up and you can be sure all the little moldies will be gone. It cost me around [Edit] $89CAD for this process but I did it on another car not this one so there are options.
One other thing to note is if you're using the febreeze stuff it leaves a wet residue everywhere so you'll have to wipe the blower down with a rag. Some ppl will shun that because it's basically getting water into the blower area but I haven't had any issues with it yet (Fingers Crossed).
Good luck whatever you do.
Cheers!
BTW - That service that the dealership did is called MiST Service
http://www.terraclean.net/mist.html
Modified by msvara at 9:50 AM 12/2/2009