Another option which has worked is to use the instructions above but instead of using a hair drying, put the opened up ipod into a bag of dry white rice. put the ipod and immerse it in the dry rice in a zip lock or plastic seal bag and seal it. leave it overnight in a dry place. then close the ipod back up and try to turn it on. It should work. The idea is that rice absorbs water.
One thing you should not do is try to plug the ipod into the computer or wall. This will make things worse since water is conductible it may short circuit the ipod and be beyond repair.