Help!  I synced my phone and now it's not working?!

I synced my iPhone today to get the new version 1.1.3 and it was going well until I noticed that my phone service wasn't working. I powered the phone off and powered back on and now all I get is a screen that says "slide for emergency" and all I can do is make an emergency call??????

Ok -- problem solved but I don't know why.
After iTunes gave me that error message, I noticed it showed my iPhone under devices so I clicked on sync. That gave me a new message on iTunes that said it couldn't read my SIM card and to go to the AT&T store to get a new one. Out of frustration I removed the phone from the dock and then put it back in the dock...this time I got a message on my phone that it had been updated and when I clicked the slider it wanted my passcode. And my phone service appears to be fine.
But.. to avoid this scare next time...I assume I should leave the phone plugged into the computer until I get the "phone is updated" message ON the phone. Correct?

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