Sorry, I never did try the nebulized iodine, but here is a study where they did nasal inhaled Iodine with a nebulizer using povidone.
http://www.ncbi.nlm.nih.gov/pubmed/10386022

I have been nebulizing 80% Colloidal Silver with
(5 parts Colloidal Silver to 1 part each of lobelia and mullein) in order to help bring up mucous, heal the lungs and eliminate any pathogens present.
“Nebulize with Colloidal Silver , lobelia extract, and mullein extract 3 times a day for 15 minutes as needed.

Colloidal silver expectorates congestion, kills bacteria, fungus, prevents infection, and rebuilds damaged tissue.
Lobelia relaxes and opens the airways to make breathing easier
Mullein expectorates congestion.
Mullein tea will also expectorate congestion”
2 drops of Nascent Iodine helps kill bacteria.

This has been very successful for my own lung problems, even substantially reduces my need for expensive inhalers.

Colloidal Silver Resources:
http://tinyurl.com/colloidal-silver-resources

Grizz