It makes no difference, whether you connect it to the charger or the PC, if it is water damage, either way it is gone, once you've connected power to the iPod.
What indicator is still RED?
Normally, if you can get a "charging,please wait" message there is still hope, charging will take at least 2 hours to reach 80% capacity.
You should get a Ziplock bag, filled with with silica gel, and dump the iPod in it for a few days. The silica gel will extract the water, from the device, but if the water if not pure (like swimming pool water or lake, or river water) the water impurities will play havoc on your circuitry, hence the term water damage by the Apple Genius.
Ok I get what you mean, I thought it is shown on the iPod screen.
This indicator will remain red, even if you have dried the ipod thoroughly, till it is replaced by a new indicator.
You can only hope after 1 week that, the iPod circuitry and hardisk, is not damaged.
I woiuld suggest to bring it in to a 3rd party iPod repair, for them to open it up, and clean the components, before more damage to done, to critical parts like dock connector and jack and some internals like Hardsik connectors.
The picture above are oxidise parts that has been in contact with water.