I hope you get it working again. My OH recently knocked his phone into a jug of water while it was on charge and didn't realise and it was there overnight, we put in a bag of rice for 48 hours, the backlight was blown, it kept coming up saying "connect to itunes" so we did, and it kept making my laptop crash, I managed to restore it and it just went back to "connect to itunes" he took the sim card out and it was fried. Now he has to take it to an apple shop with £150 for a replacement
His is a 3GS, and its for a reconditioned model which is what his was. I don't know the prices for the other models and new ones, if you pop into your local apple shop or ring them they should be able to give you some advice x x x