Is it too late to save my iPod from water damage?

jj, "I tried the whole nail polish remover in the earphone jack but it hasn't worked yet" and "sit in rice for only a few hours " are definitely nothing but a myth. Rice and nail polish remover is the equivalent of doing absolutely nothing. Now, the very first thing you want to stop doing, is to try to turn your device on or to try to charge/sync it. You are already a couple of month into the corrosion process. Trying to turn it on etc. may be causing further damage. Use this guide and clean all of your parts with a high grade (90%+) isopropyl alcohol and a soft brush. Do not forget the cable connectors. While you clean it (in your case you may have to do multiple cleanings) check for any missing. burned, or corroded components. After you cleaned it properly, replace the battery. This is not optional but an absolute must. Then reassemble your iPod and evaluate for true damage.

Water damage is the hardest to diagnose and to repair since virtually any part may have failed. So even with all the proper steps, there is still a large chance that it will not come back to life. Nothing ventured, nothing gained. Give it a try...