Hi i dropped my blackberry into water. i removed the battery and set the phone to dry in the sun.
after this the display unit was very dim.

NOW the unit wont come on at all and the RED Light is continously ON.
Have I fried the unit or what ????

Yes it is fried.

Only other thing to try is to remove the battery and put the BB into a bacg of rice and seal it for several days.

Moved to 8700 section.

Sounds to me like it is done for. I second NJ's suggestion of placing it in a bag of rice for a few days. However, if you turned it on while still damp, it probably fried itself.