Hey Cassfromnv,
It sounds to me like this is the section that you're getting stuck on:
Go to Settings > General > Reset, then tap Erase All Content and Settings.
- This will completely erase your device and turn off iCloud, iMessage, FaceTime, Game Center, and other services.
- If you're using iOS 7 and have Find My iPhone turned on, your Apple ID and password will be required. After you provide your password, the device will be erased and removed from your account so that the next owner can activate it.
So if that isn't working, I would first make sure you're connected to Wi-Fi, and if you are - troubleshoot the internet connection on the device:
iOS: Troubleshooting Wi-Fi networks and connections
http://support.apple.com/kb/TS1398
And if that doesn't resolve the issue, you can try this:
If you're using iCloud and Find My iPhone on the device, you can erase the device remotely and remove it from your account by signing in to icloud.com/find, selecting the device, and clicking Erase. When the device has been erased, click Remove from Account.
info from: What to do before selling or giving away your iPhone, iPad, or iPod touch
http://support.apple.com/kb/HT5661
Welcome to Apple Support Communities!
Best,
Delgadoh