Well.. I am out of town, so I can't effectively troubleshoot (fuses, wire colors, etc) but...
The horn path would be (simplified)
battery, through a fuse, through the clock spring, then the horn switch, down to the horn itself, then return to ground.
If no fuses are blown (again, I can't tell you which one(s) to check), then I would first check the horn itself and its connections. (because of the whole water/wierd sound symptoms)
Then I would check the clock spring.. it IS possible to fail on only one part, instead of HAVING to affect the radio/cruise.
Either way... check your connections at the horn itself. (near the foglight, on the drivers side)
Ray