Yes, I take 5% lugol's iodine with a nebulizer quite regularly. I also regularly take 1.5% Hydrogrn Peroxide by nebulizer. Very useful if you have flu or a cold. Gets rid of it quick. You can also use this method for more serious lung problems like COPD or fibrosis.
For 5% lugol's iodine use 2 drops with water in the neb cup. Breath it in for a about 5 mins.
For the 1.5% I nebulize for about 10 mins. If I'm using 3% HP, then I only nebulize for about 5 mins.
When you first nebulize with either the iodine or the HP you throat might feel a little raw. Don't worry about that, it completely disappears after you have stopped nebulizing. With both iodine and HP you might also cough a bit when you first start, but this is a good thing because it loosens the mucus and you will get rid of alot of phlegm and gunk from your lungs. What I also found with just the iodine was that it seemed to somehow rapidly reduce the phlegm or mucus in my lungs after I stopped nebulizing. This isn't surprising reallly since LI has mucolitic action on the body -- it reduces mucus naturally.