As Bill said once you get one Dynamo, they will start to prolferate. I really 
don't  build a bike or front wheel without one now. The SP's like the one that 
was linked to are my "go to" now because you can get them for $100 or less & 
they are small & light. The newer SP's may be better, but are a bit more 
expensive  & harder to find so I  haven't tried one as of yet. Honestly,  even 
some of the Shimano's are OK as well & I've picked those up for $50 or less.
Regarding moisture, yes under those circumstances moisture could get into the 
hub, but unless you are dunking the bike in water or going through a deep 
stream you would be generally looking at condensation and it would take a long 
while for this to have much effect.

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