No worries about dirt, he's in a clean stall with hay, and besides, there's not much for anything to stick to anyway ;) No reason to feel sorry for him. It was the best thing to do since the leg was dead anyway. You definately wouldn't want to just leave it like that. Gangrene can set in and the animal can die. And about the baby oil, bad idea. Spray bottle of betadine works wonders.
We checked on him yesterday and today. He had a fever yesterday of 105.5, which is a little elevated considering their norm is 102.5, but he's feeling alot better today. Gave him some Baytril since the penicillin wasn't cutting it and some painkillers. He's flying pretty high right now, LoL. Also, he needed to be neutered since he's going to a place where there are alot of mentally/physically handicapped children. But anyway, he should be ready to go sometime soon since he's doing so good.