i was wondering, what would happen to the 1st stage if water did get in? would you have to take it apart to dry it, or can it be dried out on its own with just the dust cap off?
I don't think leaving the dust cap off is very effective at drying the inside of a flooded first stage, but simply using the reg is very effective at drying the inside out, since dry scuba air is effective at drying anything.
In terms of what happens to the reg:
With the simple unbalanced piston regs, nothing much happens to them, since the air path has no dead ends other than the SPG.* It's one of the reason people like them for deco regs. It's also one of the reasons deco regs are often so corroded inside because people don't really care about flooding them underwater, and don't really do anything special after they do flood them.
I have swapped first stages from tank to tank under water many times. There is no immediate effect on them, regardless of type. Other than the simple piston first stage, I would not want to flood a first stage with salt water, and then leave the salt water to corrode the inside of first stage. Having said that, I have flooded my basically all my personal gear at different times either from underwater reg swap, or from the dust cap getting dislodged. I am not particularly worried about fresh water flooding at all.
But then again I service all my own gear. And I would at least think about servicing my gear if I flooded the first stage even with fresh water if it was not staying wet all the time. That said,
I don't really worry about it in practice, because with the dive counts I run up, my gear is getting serviced whenever it needs service, so I don't really have to worry about even sea water sitting inside the reg for very long.
*In regs with two HP ports, the HP port not connected to the SPG is usually going to suffer some corrosion since there is no flow through and it is such a tiny pinhole to begin with. This is the main place I see problems after flooding with sea water, if I don't do an immediate overhaul.