Got new iphone today and it worked for a little while now no service

i got my boyfriend an iphone 3 and synced it and it was working fine.  We put my boyfriends sim in it, and called ATT and had them change his data package to the iphone package and registered his IMEI and sim.  that was about 1 pm, no he can't even recieve or make calls or texts.  it says it has no service and att is saying that Itunes shut the phone down?  does anyone know anything about this or can they help me?  do I have to totally wipe the phone and start over again?

No one from Apple has the ability to suspend your cell service. much less "shut the phone down".  Contact AT&T and verify that they have the correct IMEI and ICCID numbers in their system.
iOS: How to find the serial number, IMEI, MEID, CDN, and ICCID number: http://support.apple.com/kb/HT4061

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