Help!! iPhone 4 won't activate!!!!

Hi,
I recently have been given an iPhone 4 as a hand-me-down.
I don't have any of the packaging just the phone itself.
I just went and got my sim card cut so that is could fit the sim card slot.
I can only get as far as the wifi settings.
When its says Activating your iPhone it then turns to SIM Not Valid.
I have used that SIM on another phone and it worked perfectly fine.
Underneath SIM Not Valid it says;
Only compatible SIM cards from a supported carrier may be used to activate the iPhone. Please insert the SIM that came with the iPhone or visit a supported carrier's store to recieve a replacement SIM card.
Please help.
Thank you

Why are you asking here, when your phone is already telling you what the problem is:
"Please insert the SIM that came with the iPhone or visit a supported carrier's store to recieve a replacement SIM card."

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