Why are you guys trying to keep a PJ soaked cotton ball dry? Once you get the Vaseline in there water won't be a problem...you just need to contain the mess.
The small containers I get from REI do a great job at containing the mess. They also happen to be somewhat waterproof. I was just stating this fact because I use them for other things too.
Although PJ cottonballs will light if they get wet I don't necessarily think keeping them dry is bad. Besides a waterproof container will contain the mess as-well-as or better than a non-waterproof container.
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