Axim X50V: Can it be electronically damaged by a bad battery?

It seems that most mobile products questions go unanswered, but I figured it couldn't hurt to ask...

I found an Axim X50V in the trash. The device itself is in mint condition, however the battery that was in it is puffed up like a pillow. Obviously it has gone bad. It did NOT leak or corrode inside the compartment, however I'm wondering if the battery going bad could have damaged the device itself.

If the Axim is likely to be fine, I can get a new battery and charger for it. I don't really need it, but it was free and would be neat to have.