Greg- you're right about preventing liquid water injestion into the intake stream. Here's my 3 cents on that, it's really simple:
run the output from whatever setup, through the BMW cyclone separator. The cyclone will pull liquid out of the water vapor stream, just like it does when inline in a PCV system. Same idea. Then, run a hose from the bottom nipple into a closed container that's lower than the bottom nipple on the cyclone itself.
Tracy G