reset

Hello there, im new here! I have to admit i registered cuz i need ur guys help. Whats the situation. Yesterday i woke up took my 8gb 4S and decided to factory reset. It was successful and i got to the first setup screen. But i couldnt activate. It said that server is not available at the moment...

long story short ,my phone got wet . the touch screen no longer works . it still turns on ,takes a charge ect,ect....but i am selling it on ebay . since the screen is non responsive i cant even open it . is there still a way to reset the phone? that does not require user input? before you ask...

I want to gift my iPhone to my niece along with all the music I put on there, over a thousand songs. But I want to delete everything else, contacts, pictures, passwords, browsing history, my phone number, banking and credit card info, etc. Is there an easy way to do this?