Cannot re Activate iPhone5 ios7 after erasing all date via Find My iPhone

I have an iphone 5 with ios7.04 which was working perfectly until I recently tried to swap a SIM card from one service provider to another (which I have done many times). After inserting the SIM, the searching msg (top left corner) remained on all the time even after the sim is removed (does not show no SIM msg). Also the carrier icon in the settings menu disappeared.
I tried several things to see it would return to normal like, rebooting, erasing settings etc. I could not restore normally because a message (turn off find iphone in icloud settings) appeared each time I tried however I could not turn off find my iphone even with my i.d. & password. I then tried a hard reboot by putting it in recovery mode and restoring the iphone via itunes to still no avail.
Finally I tried to erase the iphone via icloud in an attempt to re activate it however now my phone is back to the activation process but it will not re activate via itunes or icloud.
Has anyone had this issue before after trying everything to bring it back to life. my phone is just over 12months old from new, has not been tampered with and (just out of warranty (typical). It has never given any problem like this before apart from the usual freezing etc sometimes.
Can anyone help!!
Thanks

Solved! The problem was in the SIM card PIN. The activation mode was trying to register the device but the SIM card was locked. The only thing that helped was placing the SIM card into an another device and changing the SIM card PIN setting to off.

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