I do not know of any simple way to simplify
[tex]\frac{y^2 + 1}{y^2 - 1}[/tex]
For your other problem however, don't run away from it. We are telling you that there is a way to factor the numerator. It is a common factorization that you need to get used to, so look again in your book or your study aid or try to think about an answer.
EDIT: Yes, the book is right; there isn't anyway to simplify the first one. That's because all the simplifications you are doing rely on factorization and then canceling factors in the resulting fraction. There is no way to factor [itex]y^2 + 1[/itex] and have it cancel out with a factor of [itex]y^2 - 1[/itex]. However, it is possible to factor [itex]t^2 - s^2[/itex]. Figure out how, and you will have solved your problem.