The musty smell comes from build up of condensation inside the evaporator housing in the dash. It gets especailly bad if you always use the recir. mode. There are a couple of ways to take care of it, one is to run in the fresh air mode for awhile and not use the recir., two you can use a product like Ozium and spray around the bottom of the passengers side foot well with the recir. mode and the a/c on full blast, or three you can have the whole evap box removed at the dealer and have them clean the inside of the box and spray some deoderizer in it. The Ozium works pretty well, i've used that method on my protege and my old jeep. What happens is that when the evaporator core gets cool it promotes condensation inside the box that it's contained in and then promotes mold/mildew grow...which is where the smell comes from.