- Wipe any water off the iPod immediately.
- Do not use the iPod, turn if off if you can.
- Use a vacuum to dry out the iPod. A hair dryer is not recommended.
- Put the iPod in a plastic zip lock bag with a handful of rice or use Silica Gel Packets that come with most electronic items (I couldn't find any in my house since I usually throw them away). Leave your iPod in the bag for several hours and check it 2-3 hours or so. Apparently, the rice or Silica Gel Packets absorb the moisure in the LCD iPod screen.
My next steps would have beeen to take the iPod apart then order a new screen for $29.95 + shipping or call Apple Care. I am glad I didn't have to resort to those options.