Activating Iphone after software upgrade

After upgrading my Iphone software to 2.0, I-tunes wants me to create an account with AT&T and it will not work again until the account is made. I work in Saudi Arabia & got bought the phone here and have no idea how to get my phone working again? I am British so I don't have a US address.
Any suggestions please?

I can only presume that the phone was activated before I bought it.
When I first got it I put my Saudi sim card in & it worked just fine.
The phone came here via Dubai, so I am in the process of trying to contact the source supplier.

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