I downloaded the iOS 6 on my iphone 3GS and now it is stuck on gthe set up. It does not recognise a simcard even when inserted and tells me 'No Service'. So actually I cant set up the phone. What could be the problem since I have never encountered such.

ios 6 has made my phone lose network and hence cant be set up... please help????

It is most likely permanently bricked. Jailbreaking can do permanent damage.
You can't get help here. Discussing jailbroken phones is forbidden by the terms of service.
Buy a new phone.

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