IPhone 3GS SIM card problems

Hello. I have an iPhone 3GS and I was using iOS 5.0.1 prior the upgrade to 5.1.1. Immediately after upgrading to the latest version my iPhone couldn't find any network and shortly after it displayed "Invalid SIM card". I tried to turn it off and then back on but it didn't help. Then I tried to restore the phone with the help of itunes. After doing so i had to set my phone from the beginning to chose the language to chose the country the wifi conection etc. and at last i hoped it would activate. But it displayed me this:
"Only compatible SIM cards from a supported carrier may be used to activate iPhone. Please insert the SIM card that came with your iPhone or visit a supported carrier's store to recive a replacement SIM card."
And that's it i can't use this phone anymore not even as a music player or for net browsing. I tried again to connect to itunes in hope it had some kind of restore solution but it didn't. It even displayed this:
"The SIM card inserted in this iPhone does not appear to be supported.
Only compatible SIM cards from a supported carrier may be used to activate iPhone. Please insert the SIM card that came with your iPhone or visit a supported carrier's store to recive a replacement SIM card."
When i got the iPhone it didn't come with a SIM card. And I used my old SIM card that i was using, and it was working fine until this upgrade.
Is there a way to fix this problem? Can i downgrade it somehow? Will I be able to upgrade it with the next iOS version in hope it will have this bug fix?
Please help

Your phone was hacked to be used with your carrier.  Upgrading the iOS has rightfully re-locked your phone to the original carrier.  You cannot use your phone for anything until you activate it.  That means having a SIM card in place from the original locked carrier.  No way around this, nor is there any way to downgrade your iOS version.

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