Water damage is hard to diagnose. It can effect many different components in your iPod. The dimly lit LCD probably means you have a broken LCD which houses the back light for the [http://www.ifixit.com/iPod-Parts/iPod-Classic-Color-Display/IF130-000|LCD.] The issue you are having with the iPod not connecting to iTunes is probably related to your logic board. You'll probably need to [http://www.ifixit.com/iPod-Parts/iPod-Classic-Logic-Board/IF130-006|replace it] or buy a new iPod. I'm sorry to be the bearer of bad news.