I want to use my old iPhone as an iPod touch for the kids. It has the sim in it that no longer is active. So right now it does act as an iPod touch as it doesn't get phone service. But, I want to erase everything on it and set it up as a new iPod touch. If I erase all contents and settings what will happen? Will give me the screen that says to connect to iTunes? Or will it just be a "blank" iPod touch. And if it does give me the connect to iTunes screen how do I proceed. Do I just connect to iTunes and tell it to setup as new phone? If I do that will it still work as an iPod touch since it has the old inactivated sim in it or will it not work that way? The old iphone has ios5 on it. Do I even need to connect to iTunes after I erase all content and settings? Can I set it up as a new phone right on the device. Or will having the old inactivated sim in it change things? Thanks.