Iphone 4 factory unlocked by apple - Still locked?

Hi i was wondering if anyone can help. Firstly i bought my phone in the UK on the Orange network eons ago and have recently upgraded to an Iphone5 but wanted to use my old Iphone4 on a different network. I phone Orange 5days ago and Factory unlocked it for £20.
I have sync'd the phone with itunes
When i put sim in, Iphone says 'no service'
When i click on itunes > iphone it states 'unsupported carrier please insert correct carrier sim'
I have replaced the sim and rebooted the phone several times
I have performed a restore on the phone and now unable to set it up as incorrect carrier sim
What am i doing wrong? What do i need to do to recieve the update to say my phones be unlocked? does it have to be plugged into itunes?
Please Help
Thank you.

This is how it works ,including a restore
http://support.apple.com/kb/HT5014
Orange are known to take up to 30 days .................

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