Iphone 4 Factory Unlocked now Sim Locked?

hey
I bought factory unlocked phone from my friend. He bought it from the apple store and used his o2 sim card with it.
I am in spain and am trying my Movistar simcard (Which works on my unlocked Iphone 3g) but says "Invalid Sim Card"
Is it possible for a factory unlocked phone to become sim locked?
How can i sort this? Restore to factory settings on itunes maybe?
Cant test on a uk network till next week when im back for a visit.
Thanks
p.s yes its a mirco sim, got it transfered today. doesnt work in iphone 4, but with adapter works fine on iphone 3g.
thanks

sylo18 wrote:
Is it possible for a factory unlocked phone to become sim locked?
Anything is possible, but this almost never happens to officially unlocked iPhones. I suspect your phone is in fact NOT officially unlocked.

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