Help - Sim Card

(first gen iphone with 2.2.1 firmware)
my iPhones old at&t sim card burned out and kept saying their was "no sim", so i went in to the at&t store and they gave me a new one. problem is they didnt fully explain what to do...
they stuck the sim card in and plugged the iphone up to their computers and it wouldnt work, and he didnt want it to sync to their computer, so he gave it back to me....
its in disk mode (the one where it says to plug into itunes) and i want to get it back to my old iphone by the iphone backup on my computer now that the sim card is in. whenever i go into iTunes, it gives me the acitvation screen but i dont want that. they told me i should have the same phone number and i just want past the activation screen cause i dont need to activate a new iphone...
thanks to any help

What did you do exactly, to fix the problem?

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