Can't activate applecare-replaced iphone 4 with previously working SIM

Hi,
I had an iphone 4, purchased from apple online store, not locked to a carrier. It worked perfectly with a local carrier's SIM (Manx Telecom) for nearly 12 months, then developed a hardware fault and applecare replaced it no hassle. The SIM stayed with me.
The replacement iphone doesn't like the Manx Telecom SIM - it's an "unsupported card" or "unsupported carrier". Manx Telecom sell unlocked iPhone 4s from their own retail store, and the SIM was obtained from them. Applecare support think the replacement iphone is unlocked, and I've done an OS restore (it asked for a WEP key when I restored it, I think it's iOS5) but still itunes and the iphone say that the SIM is unsupported.
I've escalated this to applecare, and they tell me that the replacement iPhone *is* unlocked. I don't know how carrier locking works, and I don't suspect the SIM, although I'll get that checked later today.
I'm worried that this will drag on, and being from a small country with an insignificant number of people, this might get dropped into a black hole of "we've never had one of these before, it's not really a problem"
Any ideas? All gratefully received. Reports of positive experiences would be welcome, as woudl ideas on next steps if I don't get any joy from the current incident.
Thanks for reading right to the end!
Pat

Applecare just fixed it. It hadn't been connected to wifi or itunes between last call and now, and they got it to accept the SIM, presumably over GSM. I am chuffed.

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