It's a rainy day and while rocking out on your walk home, you've managed to land your iPod at the bottom of a sizable puddle. Here are some steps you can take at home to potentially avoid the need for iPod repair (since water damage is not covered by Apple's warranty):
1. Don't turn it on. This can't be emphasized enough. You may be tempted to see if your device still works, but attempting a power-on after water exposure is almost guaranteed to do more harm than good.
2. Dry it off and put it on a low volume heating device. This is probably the simplest method, since it requires the fewest resources (a cloth and a warming system like a heater) and no technological know-how. However, it is also probably the most indirect way to actually target the offending water, so this is by no means a tried and true method. If you have a blow dryer that's one way to expedite the process and ensure that heat gets to the device faster.
3. Submerge in rice. Many bloggers and other techies have noticed that the rice bath may be one of the best (albeit silliest sounding) home remedies for iPod recovery. Make sure the rice is uncooked. If it's cooked that defeats the purpose, since it won't be able to absorb the moisture in your iPod. Then seal the rice and iPod in a plastic bag and leave it standing for up to a few days. It may seem cumbersome and time consuming, but it's also one of the most popular solutions among bloggers since it has proven results if you're willing to be patient.
If those things don't work, it may be time to look into iPod repair.