Problem reading SIM card?

I am trying to activate my Iphone but can't get it to connect to Itunes.
All I get is an error message that the Iphone cannot be used with Itunes because the SIM card is not installed.
When I press on the "i" on the activation screen I get the message "ICCID: Unknown".
I have tried the ATT sim in another phone and it is recognized so I know that's not the problem.
My Iphone is on firmware version 1.0.2.
Any help with this would be much appreciated

First...I would start with updating iTunes to the most recent version. Second, if the iPhone is hacked or you purchased from "ANYONE" other then Apple or AT&T, then I would highly recommend you not activate the phone or upgrade to version 1.1.1 as you may end up with an expensive desk ornament. If all is lagit...then the update to iTunes should get you started. Also, make sure that your phone is connected directly to a USB port, not a hub, keyboard or monitor usb. Hope that helps.
Good Luck

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