iPhone 3G 16gb working but no display

Ok, I dropped my Iphone briefly in water, but just the top half. Pretty much straight away the screen went white and then pink lines appeared. Then the screen gradually started to go, I could only see a very brief light in the top corner, then eventually it went completely. Nothing worked so I figured I killed it.

I just decided to plug it into charge earlier, just once more, and funnily enough I got the little bleep you get when you put it on charge, but no display. I connected it to my Macbook Pro and itunes recognised it! I decided to restore it which worked, but when it restarted it asked for the sim card, which I had taken out. I put it back in but I got the same message about the sim card or sim pin. I can't remember what I had to do when I originally got the phone, but I don't remember setting a pin. It's difficult to see what's going on with no screen.

If I press the home button and slid unlock it and tap the screen, I can hear the keypad tones, so the keypad obviously pops up, so it seems I have a working iPhone but no display. I'm thinking of getting a replacement LCD display to try.

Has anyone else had a similar problem of the screen dying like this and fixed it? It would appear that the logic board is ok as it's working, but I don't know if the screen problem could be caused by anything else?