I would not go that far an thay that everything is ruined.
there are a few things to do when a device like that has a fluid damage.
first of all, get the opening tools, some isopropyl alcohol (>90%) or an electronics cleaner and a soft paintbrush.
use the logic board guide of the 2nd generation iPod touch to disassemble your's.
check everything for fulid residue, it looks white/greenish and is conductive - so it shortens the parts and thats why most damaged devices won't work properly.
remove this resifure with the alcohol/paintbrush - but be careful - the parts inside the iPod are fragile. don't forget to check the connectors too. after you're done - let it dry - let it good dry, don't use a hair dryer and then reassemble it and start the device.
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