There's been quite a bit of discussion on the subject in the last few years. See the wine fault discussion on Wikipedia and
http://www.decanter.com/news/60674.html A young Bordeaux scientist has discovered the cause of geosmin, a compound that gives a musty flavour that has bedevilled winemaking for several years.
The smell is often described as 'turnip', 'musty', 'rotten', or like wet earth warmed by the sun. It differs from the classic musty flavour of TCA or cork taint, which does not have a vegetal edge.
Geosmin has been known about for decades, but was not common knowledge amongst winemakers when it seriously infested Beaujolais in the 2000 and 2002 vintages. It had also affected red wines from various regions including Bordeaux, Burgundy and the Loire since at least 2000. ....
http://www.springerlink.com/content/3ca6ektlntgt1l5h/Authors
Philippe Darriet, Sophie Lamy, Stephane La Guerche, Monique Pons, Denis Dubourdieu, Dominique Blancard, Panagiotis Steliopoulos, Armin Mosandl
1Faculté d' Oenologie, Université Victor Segalen Bordeaux 2, 351 cours de la libération, 33405 Talence, France
2Institut National de la Recherche Agronomique, Unité de Santé des Plantes, 33881 Villenave d' Ornon cedex, France
3Institut für Lebensmittelchemie, Biozentrum, Johann Wolfgang Goethe-Universität, Marie-Curie-Straße 9, 60439, Frankfurt am Main, Germany
Abstract
Geosmin (trans-1,10-dimethyl-trans-9-decalol), a well-known, highly odorous compound, has recently been identified and quantified in red and sweet white wines, as well as in grape juice before alcoholic fermentation. Geosmin is a chiral compound and the (-) form is much more odoriferous than the (+) form. Enantioselective multidimensional gas chromatography analysis of a purified Cabernet Sauvignon wine extract revealed the presence of only one enantiomer: (-) geosmin. In grape juices obtained from rotten grapes and in wines this compound can be found at concentrations much higher than its olfactory perception threshold, indicating that it contributes to their earthy aroma. (-) Geosmin is also the only enantiomer to have been identified in pure cultures of Streptomyces sp. and Penicillium sp. strains isolated from rotten grapes.
Your description is very similar to what I tasetd a couple of years ago in a Beaujolais -- I thought it was corked at first, but the odor was more "rooty" than "musty".