I retored my iPhone 3g and now it's at factory settings now what?

so my iphone had been disabled and i restores it to factory settings but now it reads No SIM card installed insert a valid SIM with no PIN lock to activate iPhone. i won't let me unlock the phone only emergency calls. i don't want to use th i phone as a phone i've been using it as an ipod for a while now. i tied putting in my SIM card from my other phone and all it did was take away the message but i still couldn't unlock it.. is there any way i could unlock it?

This usually happens if the phone has been Hacked / Jailbroken / Modified...
Is this the case...?

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