Phone responds to swipe but not touch - hardware or software problem?
In order to fix this problem follow these steps.

1) Plug your iPhone into your computer and open Itunes.
2) Select iCloud Backup or Backup without iCloud.
3) After a successful backup click Restore my iPhone.
4) Attempt using your fresh iPhone and on the phone select restore from iCloud.

If this Does not work follow these steps.

1) Call or go online to schedule a genius bar appointment.
2) Pay and have apple replace your screen or recalibrate it.
3) Use craigslist or something to get a aftermarket screen or calibration.