'Different SIM Detected' Issue on outright iphone

Hi,
I've bought my iphone outright many months back. Currently I'm on a overseas trip at a place with very limited internet. When I try to insert a local SIM, iphone says different SIM detected, and asks to connect to itunes. However, when I connect it to itunes, it tries to log on to apple store, and since there is no internet, it fails and thus stops verification. I think verification is unnecessary as I bought the phone outright, and it should work with any SIM anywhere in the world out of the box!
So, I've found my $800 iphone useless if i take it out of the country of purchase. Do you guys have any idea how to resolve this issue? With limited time on hand, and since I'm in a new country, I wouldn't be able to visit an apple store or a apple reseller. I do understand that all will be fine once I'm back from my trip, but I find this so annoying. I will appreciate any help.
Thanks a lot in advance.

It is a serious reply, that's what it took to fix it.
If you run a backup of your phone before you restore it you won't loose anything.
You'll just have to wait while iTunes re-syncs all your Music / Photos / Movies / Apps which can take some time depending on how many you have.
You'll still have all your SMS messages and Contacts though just fine.
Restore was the only option for me. Once the Official carrier unlock (from O2) came through from Apple on iTunes the phone was asking for iTunes when it changed SIM or restarted without exception. I couldn't suffer my phone doing that and I tried everything to fix it. Restoring was the only way to get it working properly. Now it's works perfectly and you can put in any SIM without any complaints.
Reply if you want any more info.
Aled

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