Need help activating Iphone 3G!!

As of today I have updated my contract with O2 and got an Iphone 3G. As it's an update I don't have a new sim and I'm keeping my old one. I got told to backup my old iphone then remove the sim and put it in my Iphone 3G so I have all my numbers and stuff one the new one. But when i synced my new Iphone 3G it asked me weather I want to 'set up as new iphone' or 'restore from the back of..' I clicked restore the back up, and it's taking ages. Was this the right choice to make and will it activate my new phone? what will happen to my old phone in terms of working with a contract? And also I have a message on my Iphone 3G whilst its syncing that 'No signal detected, signal required to complete activation'... what do I do? is this a sim problem?

So you didn't wait for the restore to finish and disconnected it? Was this during the process of an upgrade from an iphone 2G? Or are you talking about the no signal issue message on the Iphone 3G?
Cheers, jonny.

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