My Droid was left to charge on a windowsill overnight. After a storm rolled in, I woke up and the phone was sitting in 1/16" of water. I unplugged it from the wall, and it immediately shut down. It seemed at first like the water was all external, (there was not much water on the sill at all), so I wiped it down and tried to turn it on. In retrospect, that was a bad decision. When it didn't go on, I removed the battery and noted that some water had penetrated the battery compartment. The water damage indicator inside the phone was unchanged (perfect red x's with white background), but the one on the battery had a pinkish tinge. You can still clearly make out the x's, but I'm not sure that would be enough for Verizon to replace. I also noticed that when sliding the keyboard in and out a couple of times, there were a few drops of water on the back of the sliding panel, meaning it must have penetrated the phone somewhat.
So I left the phone to dry out, and I'm hoping that after a day or two it will work. That said, I know the chances are not great. My main question is whether the battery itself can be damaged by water. If so, would I risk damaging a different Droid by testing the water damaged battery in it? Again, there is no indication on the actual phone itself was damaged, since the indicator there looks perfect. So if the phone itself is damaged, I could in theory put in a different battery and take it in for a replacement from Verizon. Any insight on this would be greatly appreciated.