My '03 does the exact same thing at anything below about 25degrees... and I'm in Tennessee... Pretty sad that I have to let the car warm up for 15+ minutes every cold morning just to go to work, lol... I will look into getting the cables replaced with the newer versions with better insulation... has anyone had this done for free by a dealership other than under warranty?

 

If you are willing to try and have some compressed air, remove the air filter and disconnect the cables,, then blast dry air through the cables to blow the water out, then flush them with WD40 to lube them and get rid of the rest of the water. Should get you through the rest of the winter if you stay out of those car washes.

YD

 

I agree with Yo'sDad, you should be able to blow the water out.
I also live in east TN, and have not had this problem in the rare times when it is below freezing. Coldest is about 12 but no problems shifting.

 

The is a TSB to fix the frozen cable problem on the early cars (up to the 04's?).