How about this:
I had the same issue... mydaghter's nano went through the wash and it stopped working even after we let itdry for about three days... There was an interesting solution on Dec. 31, 2006that actually worked out very well and my daughter's ipod is now fullyfunctional...
The solution was to soak the ipod in 70% rubbing alcohol...
I did just that... I soaked the ipod in the solution for about 2 hours, shookout the unit, resoaked it for another hour, shook out the unit again and leftit to dry for three days... Like I said, the ipod is just fine now!!!
I found this somewhere in the discussion pages. Just ried it and it actually worked!!!!!!!!
Hey, you might try putting your ipod in a bowl of rice. Rice being a natural desiccant will help absorb the excess moisture. Let it dry for at least 24 hours and DO NOT try to charge the device during this time. Go here for more info. http://www.labnol.org/gadgets/ipod/drop-mobile-phone-ipod-water-fix-iphone/2707/
Hope this helps!