I know this violates code, there shouldnt be pvc going into the ground, but We pulled back drywall when we got water during a storm and found it that way. Im wondering if the water bubbles are coming from the pipe, sewer backup, or ground seepage. No plumbers or water proofing guys seem to agree on it. I uploaded a short video I took while it was happening and put it on youtube. Any advice as to the source of the water would b greatly appreciated. Youtube link: [youtu.be]

That doesn't violate any codes, it's a PVC stack.
I'm pretty sure the water isn't coming from that pipe. You could cut in a cleanout tee to be sure but I'm 99% sure it isn't coming from it.
I'd think it's a problem with the foundation drain outside and that pipe penetration just happens to be a point of least resistance allowing the water to enter the home.

That looks to me like that is foundation water pushing up from a separation between the concrete and the pvc stack. If you haven't been getting a lot of rain, I would suspect a broken water line. I have seen houses have a problem like this and they drilled holes in the concrete next to the floor drain. When they get heavy rain, water can actually shoot up like a water fountain. Put a pressure gauge on a fixture inside the house or an outside faucet and shut down the water at the curb. If the pressure drops, it is a water line leak. If it doesn't, you need some foundation drainage installed.

You could also collect a small quantity of the water and test it for chlorine to determine if it is a main break.

Thanks for the reply. I've had 3 plumbers in and all have commented that it's against code in Il, or maybe just Chicago, to have pvc go into the ground. Those plumbers also told me it's a water proofing issue. I had water proofing guys out and they're telling me it's a plumbing issue...?? I had sewer back up and seepage from cracks during a heavy storm recently... got a back flow valve installed, and have 2 cracks filled, but don't know what to do about this prob! The video was filmed during a storm where I realized water was coming from surrounding cracks.

Unfortunately, this is common in areas where storm sewer and sanitary sewers are run together. The only solution for the average person is a check valve on the sanitary line, and foundation drains with a sump pump discharging the water to the ground outside, not letting it go down the sanitary waste. In addition, make sure your downspouts aren't hooked into your sewer line. In Kansas City, the city occasionally smokes the sewers and checks for houses that have downspouts run into the sanitary sewer. (and gives them a warning to fix it)