Go buy some isopropyl alcohol. It's similar to rubbing alcohol but it's 99% pure. Swear to god, pour some of it in a glass or bowl. Drop your ipod into it. The liquid alcohol will push the liquid water out of your device. Pull the ipod out of the alcohol and set it out to dry. Alcohol evaporates very quickly and will not damage or rust your ipod.
I found out about this trick when I once accidentally spilled chocolate milk on my laptop during a business trip. The milk dumped all through the keyboard and deep into the laptop. I ran to Fry's in a panic and a salesperson there told me the alcohol trick. It worked great. It took a couple of bottles to rinse all of that crap out of there but I ended up with a working laptop. Since then I also have used the same trick on my cell phone when I once dropped it in a puddle and a friend cell phone who dropped it water. I actually keep a bottle of isopropyl alcohol at home now at all times.
Remember, alcohol is very flammable. Make sure you're not near any open flames, the device is not plugged in and the room is well ventilated.
