Activate old 3G - unable to recognize SIM card

I have a 3G with a cracked screen that will not recognize a SIM card. My kids use it as an ipod and to take pictures. I stupidly upgraded to ios 4.0.1, not realizing I needed a SIM to activate. Is there any way to activate without a SIM- it is currently stuck on the connect to itunes screen. Would a genius appointment be of any use.
Thanks for any help.

Is the sim card from the carrier the phone was locked to or last used with? If so, put the sim card in the phone, then:
See if you can force the phone into recovery mode:
Leave the USB cable connected to your computer, but NOT your phone, itunes running, press & hold the home button while connecting the USB cable to your dock connector, continue holding the home button until you see “Connect to iTunes” on the screen. You may now release the home button. iTunes should now display that it has detected your phone in recovery mode, if not quit and reopen iTunes. If you still don’t see the recovery message repeat these steps again. iTunes will give you the option to restore from a backup or set up as new. Select restore from backup, follow by syncing your itunes content.

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