Personnally I'd try and solve the wet hot pipe problem first.

Sorry to be ageuementative but this is illogcal - condesation forms on cold surfaces not the hot (living in the UK we know this, we have a lot of cold and wet)

Question are the pipes hoter or colder than the surrounding air?

You say the pipes/joints aren't leaking but bear in mind the water pressure increases at night when all you CA's stop taking showers and filling your pools.

Its not ant pee is it? Does it smell?

The hot water pipes should dry any moisture intouch or imediatley around?

A wild guess - is the insulations open cell foam possably with a non porus outer skin (Like a sponge in a plastic bag) - when the pipes are hot moisture on the pipes evaporates into the insulation, when the pipes cool moisture is sucked out of the insulation and condensess on the pipes.

You could always introduce air flow - dont no what it will do to your thermal properties though.

Good luck

Cameron