Chace's ipod, continued...

Once the screws are out, you can unfold the ipod like an accordion. The screen has been flipped over so that its face is sitting on the HD.
 

Another view of the opened up ipod. In case you're wondering, the battery is located on the back of the click-wheel, out of view.
 

I only found evidence of water damage in one spot: on a few of the pins connecting the display to the main board. It either looks like corrosion or damage due to overheating. Corrosion is more likely, as we know the device had been for a swim.
 

Aside: There was something rattling around in the ipod when I got my hands on it. It turned out to be a small phillips screw that held one side of the connector bracket to the steel back-shell.