IPhone 3GS No SIM installed

Hi there, I cant get my iphone to activate since I installed iOS 5 last night, on any firmware on itunes it says 'Waiting For iPhone' and then says 'There is no SIM card installed in the iPhone you are attempting to activate' I have been trying to activate it on iTunes 10.3 with firmwares 4.1, 4.3.5 and iOS5 and this has come to no avail, I tried to do it with itunes 10.5 and that didnt work either. One thing I have noticed is that even without a SIM in it says either 'Searching' or 'No Service'. Has this problem got anything to do with the iPhone activation servers? This problem cannot be anything to do with the hardware because it was working fine on 4.3.5 before I updated.
My iphone is:
3GS White (new bootrom)
Baseband: 6.15
Carrier before update: 02
Part Number/Model: MC132B/A
A few thing, when my friend gave it to me, he did say it was unlocked. And I believe that is what caused error 1015 on every single one of my restores, which I fixed using a program called 'redsn0w' (this is a jailbreaking app, I ONLY used it to kick the device out of recovery mode, not install 'Cydia')
Can anyone help me?

You'll have to contact AppleCare to find out who the original carrier was for your iPhone, and then contact that carrier to verify that it was an official unlock.  Otherwise, the SIM card you're trying to use simply will not work and you'll have to get the carrier to unlock the iPhone for you.  Receiving error 1015 means either your backups were created unsing an eariler version of iOS or that the phone was jailbroken; my money's on the latter.

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