Problems with my iPhone 3G

I recently acciedently dropped my phone into water.. and im using my iphone 3G as a back up until i get a new one.. so heres the deal, when I go to connect to Wifi it searches and no wifi connections are available, although there really is. I already restored my device and reset the network options.. what else could i do to fix this?

Also, when I try to update the software, it says 4.2.1 is the current version.. Is there any way to update the iPhone 3G to ios 5.0.1? Any help would be greatly appreciated. Thank you!

5.0 will not run on a 3G iPhone. If it did it would take 5 minutes to open any app. No one could use it. Apple stopped at 4.2.1 for a reason. The CPU is way to underpowered for anything newer!

Never had that WiFi issue with my 3g, so not sure what is wrong.

It happens to what is/used to be my 3G a long time ago....... Try baking and restoring it, restarting, then reset network.