I have the same problem when my daughter accidentally put her coat, with the iPod, in the wash.
In my case, (1) I the display does not work. (2) The click wheel clicks. Furthermore, I can click next and back to go to the next song and back, respectively. However, given that the display does not work, I cannot be sure if the click wheel is functioning.
QN: Do you think I need to replace the display? And the click wheel?
FWIW: It's been about 2 months since the accident. I waited about 2 days before trying the iPod.
Cheers!