HT1386 the ituns can't start syncing my iPhone

The ITunes can not start Syncing my iPhone  it was working well
Recently I installed Picasa and Photoshop CS 6

You need to install an ATT USA SIM card for a moment to Activate your iPhone. It does not need to be active SIM, but it has to be ATT.
You are correct, you said, "I understand that if i do a SW update the phone gets locked again to the original network (U.S in this case) and will not work in N.Z.
If you search the Web there are ways to Activate your iPhone without a SIM card, but these methods cannot be discussed on Apple Forums.

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