2nd gen nano stuck on hold

I have a 2nd generation ipod nano we've had for a while.  It got wet and I've tried drying it out (in rice).  Now I can plug it in and see that it's charging.  I can sync it to my MacBook/iTunes.  But when I switch it OFF of Hold mode, the screen pixelates and goes blank.  When I switch it back ON Hold, it resets (Apple icon) and then shows the "select your language" screen.  But I can't do that because when I switch the Hold switch OFF, it pixelates and goes blank.  I don't care about saving anything on the iPod, I just want to see if I can figure out how to reset it to let my 7 year old use it to listed to some stories and music.  Any suggestions?  I should say that I've already tried the switch the hold switch on/off several times and pressing the Menu/Select buttons doesn't seem to work either.

Hey there,
See if any of these troubleshooting techniques help.
http://www.instructables.com/id/ipod-nan
http://forums.ilounge.com/showthread.php
This one involves using tinfoil
http://www.diylife.com/2008/04/14/fix-lo
B-rock

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