After reset can't use as iPod without sim

I upgraded to a 3g iPhone a while ago and have been using my original iPhone as an iPod without a sim card.
I was planning to lend my old iPhone to a friend and thought that I would reset it before giving it to him - so I "reset all data" , which took an hour.
Subsequently the iPhone has been completely reset (as planned) but now requires a sim card to be inserted in order to activate it via iTunes.
What is the best way to go now?
Should I insert the sim from my working 3g iPhone into my original iPhone and activate it? - what will happen to my 3g phone? Will it stop working for a while but then let me swap the sim back and reactivate the 3g phone?
Any help would be appreciated as I would like to carry on using my 3g iPhone and sim card (with all the settings !) and also be able to use my original iPhone as an iPod + wifi device.
Many thanks
Adam

That could have replaced your 3G data package with the Edge package. That was what happened when I re-activated my orig phone after upgrading to the 3G. I had to get on the phone with AT&T and verbally get them to switch me back to the 3G plan. Otherwise they will hit you with additional charges for 3G usage on the Edge plan, in which case I am sure you will not come out ahead on. FYI.

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