Originally posted by akptc but in M mode the screen just shows the over/underexposure w/out actually doing anything.
Bit confused to what exactly is the problem here. If the meter is showing over/under exposure you have to centre the meter reading yourself by adjusting shutter speed or aperture.
Re-reading your post I think you are just saying that Auto EV compensation is not affecting your exposure in M mode. In fact I don't think Auto EV can work in M mode at all, but could be wrong.
So regarding your overexposure problems, have you tried using another lens with the same M exposure settings to see if the lens is at fault? Have you checked that bracketing is turned off ? Can you post a picture of the scene?