Okay guys, yep water damaged phone, but before you say I'm SOL I did get it to power on to the Motorola Flash Interface. I'm doing this for a friend. As soon as the battery is placed in, a red light turns on about 4mm to the left of the notification light. This is not the notification light though.
First of all, his battery was completely damaged, so I stuck in another battery and got it to power on to the motorola flash interface, thinking maybe it was a coincidence, I took the battery out, put it back in and powered it back on, Motorola logo comes up and then goes to the "ok to flash" screen, which means I can use RSD Lite, so I had to download an SBF file, but now it won't power back on. So I figured maybe soaking it in Isopropyl Alcohol to displace any crap that was short circuiting the processor (the processor get's really hot), let it soak over night and and then dried it out this morning. It did get out a ton of crud, dirt, and other stuff, put the battery in and still won't power on, the red light still turns on though.
Edit: Might be willing to ship it to someone, perhaps a dev, someone who's interested in seeing if they can jtag it and get it to work.