Why do I need to re-register my iPhone3gs after unlocking

I recently received an unlocking code from my service provider, O2. I followed their instructions but was horrified initially by a message which stated "iTunes has detected an iPhone in recovery mode. You must restore this iPhone before it can be used with iTunes".
Clearly this msg must have been a from a joker, someone who has not spent their entire Sunday afternoon doing this before?
I ignored this message and rebooted the iPhone twice and it went away and everything went thorugh with the unlock.
However, every time I connect my iPhone to iTunes, it comes up with another ghastly "joke" stating that I must "register my iPhone" and "Setup my iTunes store account" as shown below.
But my iPhone is already registered and I already have an iTunes Store Account so why on earth do I need to repeat this again?
I called the technical support but the very poor quality of the audioline meant that I could not understand the answer.
Anyone out there have any clue why this is the case? Can I continue to ignore this msg forever as I have no intention of going back to square one.
One last question, please. Does anyone know of any SIM card in the US which is pay-as-you-go for data, text and phone for an unlockd iPhone. I have a SIM card from T-Mobile in the US but they don't do data and I can't find anything which makes sense on the Verizon or AT&T websites...
Thanks for any answers...
P

If the unlocking procedure wipes the iPhone, and it sounds like it does, then you would need to start over with the iPhone, including registering, etc. It is a whole new situation.
I have a prepaid T-Mobile US account and I pay $3 per day on the days that I use any of the services and I get unlimited calls in the US & Canada, unlimited text messages and unlimited data for that day.
You cannot use the phone that you have on Verizon or Sprint. It is a G3 iPhone that can be used with AT&T and T-M. AT&T does not allow pre-paid SIMs with iPhones.

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