Spilled water on iPhone - any chance of it repairing?

My iPhone 3g got some water on it today when my water bottle leaked inside my bag (I didn't realize for a long time). I blow dried it a bit, and it got better temporarily. But now it's just dead; it won't turn on or do anything. I was at school when this happened, and was only able to put it in rice about an hour ago (when I got home).So basically, it was not put in rice until about 5 hours.
I'm going to leave it in the rice, then check on it tomorrow morning.
I'm just wondering what are the chances it will work again? It was working (more or less) earlier - it was very erratic, but it was capable of being on and the buttons worked. What are your experiences with a water damaged iPhone? Is there any hope, or will it most likely need to be replaced?
Thank you.

Added (1). By the way, my warranty expired quite a few months ago.

If you are a kid just go to the apple place and ask for a new one if you have a warranty.

Once the water has been in for a while, putting it in rice won't do any good. At this point you need to take the front cover off and then put it in rice. Most things can be repaired if you know what you are doing. It is also possible to have it repaired fairly cheaply.

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