I purchase a Whirlpool duet sport in Feb 08 and since Thanksgiving of 09 it has been retaining water in the fabric softer department. I have removed it and cleaned it out several times but to no avail.

You could have a clog in the housing underneath the dispenser where the water flows through a hose into the tub.
Pull the dispenser drawer completely out.
There is a tab that needs to be depressed to release the drawer and remove it.
Check the opening at the bottom of the housing just inside the dispenser housing opening to see if a small sock or garment is clogging this opening.
Reach down into this opening to see if an item is inside the hose.
This is the normal issue that will cause water to leak out of the dispenser housing.

Wash the dispenser drawer thoroughly with warm water. Make sure that you pull off the siphon covers and wash all siphon holes. This process is described in your owner's manual. Replace the dispenser drawer and try the washer again.

Thanks for using FixYa - a 4 THUMBS rating is appreciated for answering your FREE question