One thing to speed up the drying process is to put the device in a bowl of rice. This has worked for me on an iPhone 3GS and iPod 2G. Power the device off and leave it in the rice for at least a week.

In my family we have had both an iPod 2G and iPhone 3GS that have been dropped in water. I was able to get both of these devices working. This is what to do if this happens... 1. Turn the device off ASAP, do not attempt to turn the device on for a week. By trying to turn it on it could make the situation worse. 2. Get a big bowl of Minute Rice and put the iPhone(iPod) in the rice. 3. Leave it there for a week As I mentioned earlier this worked for me, I am not sure if I am just really lucky or not. We still did have a few issues witht he sounds and the dock connector on the iPhone but over time it appears to have been resolved.