Sim Card Not Recognised

Had an issue with the second hand 2g Iphone not showing up on Itunes, Apple suggested a hard reset which I did, the phone now wants a "valid" sim to activate the phone, apple are saying I need the original sim(impossable) and o2 are uncertain what the issue is and suggest I get it jailbreaked/unlocked but I prefer not to deal in back street shops etc.
The guy I bought it from changes phones regularly as well as contracts etc so has no recollection of the number it was fist on or I could ask o2 for that.
Help

It sounds like your second hand phone may not have been an O2 phone but a hacked phone. What is the model number of your iPhone? This might help determine if you have an O2 phone or one from elsewhere.

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