Activated Wrong Area Code

When I helped a friend activate her phone we had lots of difficulty...the process kept rejecting her number both as an AT&T customer and as a transfer (from the OLD AT&T).
The activation/transfer finally went through, but then we got an SMS message saying it failed and we should reactivate and call an 888 number. Turns out we inadvertently entered the wrong area code but the right phone number. There is no obvious way to reactivate in iTunes. A restore just wiped out the personal data from the phone but didn't put it back to the "out of box" screen.
We finally got in touch with AT&T and they told us this:
- The phone is activated in the AT&T system even though the
area code and number are invalid
- The old phone is still active
- The SIM is locked to the incorrect number
To correct the problem we were told to visit an AT&T store where they would need to:
- Cancel the bogus account and number
- Install a new iPhone SIM in the phone
And then we were told we would need to connect the phone and go through the activation again.
In looking over other number problems, I've seen at least one post that said AT&T was able to change a number and a new SIM was not mentioned.
Does the story I've been given by AT&T sound reasonable?
Obviously my friend is rather depressed not to be able to use her phone...it works on Edge and she can make outgoing calls and use Internet features, but incoming calls (obviously) don't come through.
Advice? Thanks.

Advice? Go to the AT&T store and get a new SIM. The quicker you go the faster you'll get it resolved.

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    mk9000 wrote:
    Okay. Well sorry about the post. I'll try to fix it all then.For starters, look at this "test" code:
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