Help! Dropped my Instinct in water!

Well, actually my daughter dropped it in the dog's water dish.   

So, this happened last night and I grabbed it out instantly and wiped it off with a towel. I then (I now realize this was a mistake) turned it on. It loaded it up went to the main menu and then shut off. I opened it up, took out the battery and wiped it off then put it back in and turned it on. Same thing happened.
SO, I googled and then saw advice to put it in a bowl of dried rice. So, I did that overnight, tried it this morning and it stayed on for like half a minute and then turned off.
I just tried it again and it stayed on for like 3 minutes then shut off.

Is my phone damaged? Or is it just the battery?

Second problem I see is that you keep turning it on...

Water and electricity don't mix, my friend.  If you don't want to destroy your phone then have some patience and let it dry out.  I dropped my phone in a puddle the other day and the first thing I did was turn it off and leave it off.  This is the second time in a year that my M800's gone swimming and both times it's survived.  I put mine in the refrigerator with the ports open, back off, and battery out.  I leave it there for 24 hours.  Then, when I take it out, I immediately put it in a zip lock bag and seal it and then leave it on the counter to warm back up.  If you don't put it in the zip lock, the humidity will condense inside the phone and you'll be back at square one...