iPhone not functioning.

I was playing on my iPhone 4S, when the screen sudenly shut off completely. The phone was completely unresponsive, and still is. I have plugged it in to my computer and tried to do a reset, but I get an error message "Error has occurred during restore" or another one that comes up that says "iTunes cannot communicate with "My iPhone". Please try again. I dont know what to do besides buy another iPhone. I have checked all three litmus-strips. The one inside the back of the Phone is White, but the ones in the dock connector, and audio port are bright red. Is it water damage?