Restoring may not help with the keyboard - there is no bug regarding touch sensitivity of the screen (see link)
"DFU" mode is not needed for restoring or any troublshooting steps. This is a misconception commonly posted here. What you want it Recovery mode, but ony if you can't get it to restore in iTunes. DFU mode is only used to hack the phone (Less than 10% of people posting about it actually know what it is and when to use it.)
http://www.ihackintosh.com/2009/06/recovery-mode-and-dfu-mode/
To put the phone in recovery mode:
1. Start iTunes with phone disconnected
2. Press and hold the home button while connecting the phone and keep pressing until iTunes sees the phone in Recovery Mode.
3. Follow the prompts to restore.