A recently proposed classical-trajectory dynamical screening model for the description of multiple ionization and capture during ion-water-molecule collisions is extended to incorporate dynamical screening on both the multicenter target potential and the projectile ion. Comparison with available experimental data for He2+ + H2O collisions at intermediate energies (10-150 keV/u) and Li3+ + H2O at higher energies (100-850 keV/u) demonstrates the importance of both screening mechanisms. The question of how to deal with the repartitioning of the capture flux into allowed capture channels is addressed. The model also provides insights for data on highly charged projectile ions (C6+, O8+, Si13+) in the MeV/u range where the question of saturation effects in net ionization was raised in the literature.