If my iPhone 3GS turns on but cannot use the touch screen, could the Processor be the problem?

I recently dropped my iPhone 3GS but cannot use the touch screen. I took to a local repair shop and they tried replacing the digitizer and some other items but still could not get it to work. They advised that the Processor could be the problem. Is this true? If so, can the processor be replaced without losing data? Additionally, my phone has a lock code and when I try to connect it to my desktop to back up, it states that I need to enter my 4 digit pin first, which of course I cannot. Any workarounds here or am I SOL?

Hook the phone to a computer running iTunes and backup to the computer. Copy pictures off the phone manually to the computer.

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