Once you've sealed it in the bag, do nothing at all to it. No watering, no fertilizing, no misting, absolutely nothing. And keep it somewhere dim, 2-3 months. You're not going to treat it like you would normally treat a dendrobium at all. This is last-ditch, hardcore recuperation. Set it, and forget it. WHen you repot, use bark that's been soaked so that it can fill the baggy with its humidity. It'll fog up a little, but if it fogs up a lot, you're keeping it somewhere too warm and / or too bright. If you're repotting the plant, you don't need any sphagnum. Use that only if you seal the plant in a baggy bare-root: the sphagnum or wet paper towel supplies the humidity.
Aaron--good to hear your success story!
These guys are lot tougher than most give them credit for, so Styx, hang in there with it.