Factory Unlocked iPhone 4 from Canada not working overseas

Hi all, I'm looking for help.
I purchased a Factory unlocked iPhone 4 in Canada for the purpose of selling it on eBay (to help offset the cost of my own iPhone 4 purchase). It was purchased from an Apple Store in Toronto.
The buyer is in Ireland, he got the phone, put in his 02 micro-sim and gets the following message: "The SIM Card inserted in this phone does not appear to be supported." He has 2 micro-sim cards and both did not work.
Has anyone encountered anything like this? Are there limitations to how unlocked these phones truly are? Any advice or thoughts on a solution?
Any help would be appreciated, I've called the Apple support many times, and they tend to not be very aware of how their own factory unlocked phones work.

This is how I Think it works in canada for the iPhone 4 Factory Unlocked this info is from the apple web site about the I phone 4 is Factory Unlocked only from the Apple web store online only I think.
this is the info that I copied from the Apple web store site I hope this helps you.
Here is a link to the info on the Apple Store Canada web Site
http://store.apple.com/ca/browse/home/shop_iphone/family/iphone?mco=OTY2ODA2OQ
Buy your iPhone from 
Apple commitment-free.
It works with the carrier of your choice.
 _*Buy your iPhone from the Apple Online Store*_
_*and choose your own GSM carrier.*_ *_You can change carriers at any time._*
It’s easy to set up.
Get a compatible SIM (iPhone 3GS) or micro-SIM card (iPhone 4) and select a plan from the carrier of your choice. Then insert the card and set up your iPhone using iTunes on your Mac or PC. With a few clicks, you can start making calls.
It works internationally.
Because this iPhone is commitment-free, you can purchase a micro-SIM or SIM card and service from a local carrier at your destination. Or check with your home carrier regarding international roaming charges.
Message was edited by: bab.bc

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