Iphone says incorrect sim after 1.1.1 update

I just updated my iPhone to the 1.1.1 firmware and as soon as it was finished i got a message on my phone telling me to isert an unlocked and valid SIM to activate iPhone, when i have my original in. On Screen it shows that i needed to get a replacement SIM; so i did. And still NO LUCK. I have not unlocked my phone at all.
Thanks

I am too a AT&T customer with a valid AT&T SIM card, and my phone too is now hosed
Unbelievable....I wish Apple would at least confirm whether a real AT&T SIM is in the phone before trying to trash all the unlockers who are using the iPhone with non-AT&T SIM's...

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