Hey man, that verse that says "born of water" is totally talking about the first birth, the birth of the flesh... Paul said "I came not to baptize".  Baptism is the first step of obedience after salvation not a work necessary for salvation.  That is obvious to me, I mean, look at the thief on the cross.... look at death bed salvations.  The work of grace that God performs in our hearts cannot be achieved through obedience even to Him... it is grace through faith, not of works.  Works, like baptism, are a result of true faith, not a prerequisite for grace.