ok..
I have an iPhone 4 which is disabled and I need step by step help on getting it brand new again(factory settings?is that what it's called?i don't know) as I have already proven..im not so good with this..hehe.I've tried googling and it all came back with the whole "hold the sleep/power button and home button for 10 secs while connected to iTunes" stuff,it doesn't work.Or maybe I'm not doing it right?

PS - It's not stolen,I found it

Unfortunately, a found iPhone needs to be returned to law enforcement. If after 30/60 days no one claims it, then it's yours. If this phone is associated with an iCloud/Find My iPhone account, the data linking the phone to those accounts will persist even after wiping and restoring and the end user will be able to remotely lock and wipe the phone even if you restore iOS. You should turn the phone into local authorities, as even if you bypass the passcode now, the remote disable will be received again when the phone is wiped and you attempt to re-activate it. It's not like Blackberry where it sends the kill signal once and stops, it sends it every time the phone registers until the Find My iPhone administrator removes the phone from their account.

In any case, even if you didn't actually steal it, taking it and not reporting that you found it is still illegal in most countries, the charge varies but it's still effectively viewed as you keeping something in your possession that you know you do not own. As such, we can't really help you. Beyond that, even if we gave you the information to restore it and get it back to a working phone, it would just re-lock again nearly immediately. You should just return the phone.