Major problems with iphone 3G update to OS 4.0.1

My 3G 16gb was opening screens for messages, phone, photos, etc really slow on OS 4. So thought id update to OS4.0.1.
After updating, my phone was displaying "No service" for two hours. I could not make a call. So i tried switching airplane mode on and off to see if it would search for my network (Optus in australia). Well it tried to search for a network for 30 mins.
So now i tried doing a "restore" to factory settings via itunes. Went fine up until the point where it said to "leave the phone connected to itunes while it restarts, it will reappear in itunes once it has restarted." It tried to restart but it came up in itunes as "There is no sim card installed in the iphone you are trying to activate". Tells me to disconnect, insert a sim card.
Disconnecting from itunes, the phone displays an insert sim card message whilst on the emergency calls only screen. Have tried ejecting and reinserting my sim card multiple times.
OS 4 has been nothing but suck so far.

Well went into my local apple authorised reseller. He tried my SIM in other phones and nothing was coming up. He was bemused how it could be possible but he said looks like the OS update has killed the SIM.
So i had to go to my carrier (OPTUS in Australia). They too said the SIM was stuffed, so they charged me $25 for a new SIM and put my usual ph no onto the new SIM. They activated the phone via their itunes instore. Phone restarted but of course is totally blank as far as contacts, message history, calendar, music, apps etc.
Got home and re-synced the phone to my itunes. Had to do a bit of re-setting up of preferences/customisations, but all seems to be back to normal.
Phone is still a little sluggish opening pages/screens.
So: almost two days without an operational phone, half a day running around in town trying to get it sorted, $25 for a new SIM, and resetting/syncing the phone.
I suppose I'm just happy it's (as far as I can tell for now) back to normal operation. Hey these things happen. I could of got a $140 flat tyre as i drove in.

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