HELP!!!  iPhone randomly reset and now it won't detect SIM card?

Ok so here's what I was doing when this all happened.
I had called the Linksys support for a new router I just bought that wasn't working right. After waiting about 8 mins I was connected to a gentlmen in India, we worked on my problem for about 10mins or so and then all of sudden my phone just reset, or at least went to the apple logo and just sat there.
then after 30 seconds it started ringing (before it fully restarted) and it was the tech gentlemen call me back. So I slide the thing to answer and the screen froze with the slider on the right but not unlocked but I could see the time and my back ground, just no buttons and I could still hear him and talk to him.
After we fix my problem with the router he hung up, but my phone was still froze and then it started ringing (a friend had tried to call me before it reset while I was on the phone so I assume it was him again). I couldn't answer and it just kept ringing and ringing so I held the wake button and slide the red slider to shut it off.
Left it off for 30 seconds or so then press and held it again to turn it on. Now it says restore need, connect to itunes!
ok, so I did and after wait about 30sec to a minute after connecting it to itunes it comes up with this error:
*"iTunes cannot activate your iPhone because the SIM card is not inserted or a SIM PIN is required. Disconnect your iPhone, make sure the SIM card is inserted correctly and, if you use a SIM PIN, tap Unlock to enter it, and then reconnect your iPhone."*
What the heck?! I've had it randomly reset once before about a month and a half ago and which point I did have to restore, and it did and it worked fine after that.
The SIM card IS in there, and I have no idea what my SIM PIN would be, nor do I see the option for it they speak of! And this happened about 9:30pm, well after any Apple or AT&T stores are closed! I even turned off the phone, took the SIM card out and put it back and it still did the same thing!
What would cause this to randomly just mess-up like this? I loved this phone when I got it but now that this is the 2nd time this has happened and much worse I'm pretty ticked about it. And it's not like I hacked it or unlocked it or whatever that is even called, the only things I've put on my iphone are music, pictures, and programs I all got thru itunes!
PLEASE HELP!

Hi Guys,
I'm writing this from the UK. Got an iPhone 3G bought a few weeks ago and activated (no jailbreak or other stuff)it. It worked fine but last night it gave the same error as originally reported in this thread.
Went into the O2 store (this is the provider selling iPhones in the UK) and they told me is the SIM card. Got a new one but still the same...
There is something going on here because I've seen lots of claims with the exact same description. Its almost like there is a bug in the software that gets activated on the 3rd of January.
Will go tomorrow again and ask for a new phone.

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