IPhone 3GS no longer reads sim card & now I can't update my iTunes...help?

Hey Guys,
So, my iPhone 3GS recently got sprite spilt on it and because of that it will no longer read the sim card...so basically it's
a glorified iPod Touch at this point (meaning I can do everything on it but make phone calls or text). Before it got ruined, I purchased some music ($30 worth) on it and now when I tried to transfer my purcahses to my iTunes account on my MBA it keeps telling me that I have to put the sim card in and it won't let me sync it. When I log onto my iTunes account it shows that I purchased the songs under the Purchased tab and tells me the serial number for my receipt, but I have no way of getting my actual music onto my computer. Any suggestions would be greatly appreciated, I'd hate for all my music...and money to go to waste, thanks! 
- Ms. Hylton

You should be able to go to "store" on iTunes and select check for available downloads. If you connect the phone and then right-click on it, it asks for the SIM before it will transfer purchases? That seems odd.

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