Various problems when trying to use both my iPhone 4 and iPhone 5 at the same time? HELP!

I am experiencing a wide range of problems with both of my iPhones. They are both a 4 and a 5. I will list the problems I am having.
Using both phones:
A few weeks ago I recieved a new phone, the iPhone 5 as my contract was renewed. I backed-up my old phone, the iPhone 4 to my computer and restored it onto my 5. But when using my 5, I discovered it has 'no service' (but will use wifi), it won't send IMs OR texts and Apple constantly keeps asking me for my Apple ID which i recently changed but still uses the old email, and won't accept any passwords.
The 5 used to send IMs and texts but they would be sent to my friends through my email address, so I googled this and went to messages>send and recieve, and the only thing i can select is my email, not my number. I am using the 4 as well, purely so I can send texts and IMs through my name, not my email. The 4 also has signal and wifi, whereas the 5 only has wifi. I am wondering if the 5 has no signal and won't send IMs & texts because I am still using another phone? Surely they both cannot work together, so I was thinking I could reset my iPhone 4, and then see if the iPhone 5 will work, once the second phone isn't used anymore. If that doesn't work, I thought I could reset my 4, back-up my 5 and then restore again. I think that will work, but I have no idea.
I have absolutely had it with trying to figure it out, I have used google but nothing seems to work. I am really hoping someone can tell me what to do with all my phone problems, because they are absolutely driving me mad!!!!!!!!!!!!!!!!!!! 
I need to use the 5, it is costing me an extra £60 a month to use and I feel as though that money is being wasted as I can't text, IM or call people. Should i just get rid of the 4 and see what happens? I read online that to stop iMessages coming through as your email, you should turn it off and use regular texts. BUT I DO NOT WANT TO DO THIS. I send way too many texts, and it would cost a fortune. I also can't send photo messages on texts, because they cost a bomb to send through. I want to be able to use both texts and iMessages - using my name, not my email. 
To add on to that huge essay I have written, on both phones Apple CONSTANTLY asks me for my Apple ID which I recently changed. I changed the email and the password, and it is coming up with the wrong email, and whatever password I put in, it still says it is wrong. It doesn't make sense, because yesterday I purchased some music from iTunes and when asked for my Apple ID, it used the right email and accepted the correct password. ...??? yet it still keeps getting it wrong, even though it worked in iTunes. ??!?
Okay so I just reset my iPhone 4, and nothing seems to have changed...I thought if I reset it, it would be completely wiped, like a brand new iPhone 4, but it's not....THIS IS SO IRRITATING! Can someone please help me! I GREATLY appreciate any answers, hopefully someone on the internet can fix my problem! thank you for taking the time to read this essay, I am very thankful. PS. Both phones are up to date.

You said, "the 4 also has signal and wifi whereas the 5 has only wifi". By "signal", I'm assuing that you mean cellular signal. If so, that means your iPhone 4 is still active on your cellular number and your iPhone 5 is not. Contact your carrier to sort out which phone is active on your account.

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