iPhone 4 permanently locked/disabled

[BlackAlys]

I've just found my first iphone - permenantly disabled because I've forgotten its passcode and subsequently forgot about it in a drawer. I'm on a mission to wipe and restore all my iphones in the house and....donate them perhaps, som something with them.

I've plugged it into itunes and done the homebutton and power button press and hold down, but itunes won't give me that pop-up option to restore it. Help?!

Bump

Have you done all of this from #4 onwards?

1 Push the buttons on your iPhone until the power off slider appears. 
2 

3
4 Continue to hold down the power button, volume down button, or home button until the recovery mode screen appears. This screen looks like a lightning cable with a plus sign next to the iTunes logo. You will also see text at the top of your screen that says support.apple.com/iphone/restore.
5 Click Restore in the pop-up window on your computer. If you see another pop-up message that says, “Could not connect to the device,” click OK. You should then see the pop-up message that lets you restore. 
6 

7
8 If you see another pop-up message after, click Restore & Update. Then select Next to download any updates needed. Note: This download may take several minutes, depending on your internet connection. If the download takes longer than 15 minutes, your device may automatically exit the Recovery mode. If this happens, simply wait for the download to finish and then repeat Steps 1-3 to get back to Recovery mode.
9 Wait for the restore to finish. Here, your computer or laptop is processing files and extracting software so it’s very important that it stays connected to the computer and is left alone. Wait until you see a pop up on your computer screen that says: 
“Your iPhone has been restored to factory settings, and is restarting. Please leave your iPhone connected. It will appear in the iTunes window after it restarts.” Click OK, or just wait for it to be automatically dismissed, and your iPhone to begin booting up.
10 Start setting up your device. Once it’s all set up, you’ll be able to use the device again and set up a new passcode.
Note: If you set up a new passcode, make sure to use a code you can remember this time or you’ll have to go through the hassle above all over again.
If you have a backup copy of your iPhone (in iTunes or iCloud), you’ll be able to restore your data and user settings. Find out how to restore your iPhone from a backup, by clicking this link.

There are also options on unlocking a disabled iPhone using apps. However, going this route is not recommended. Even if you downloaded the app from the App Store, there is a chance that it could damage your iPhone.