SIM Card Not Supported.  Never Hacked iPhone Bought From Apple Store!

My 3GS was stolen yesterday. I have my never hacked iPhone 2G that I wanted to re-activate so I went down to the ATT store and they gave me a new sim to put in and activate. iTunes says that the SIM is not supported. Went back and tried another SIM and no luck. After 2 hours at the store still no working phone.
I never hacked the phone, just always updated it with the latest apple software. It sat in a drawer for a year now until my 3GS was stolen. Restore didn't help.
ANY IDEAS?

Mmmm...the sim you're trying to use is activated, correct? If so, try this:
See if you can force the phone into recovery mode:
Leave the USB cable connected to your computer, but NOT your phone, itunes running, press & hold the home button while connecting the USB cable to your dock connector, continue holding the home button until you see “Connect to iTunes” on the screen. You may now release the home button. iTunes should now display that it has detected your phone in recovery mode, if not quit and reopen iTunes. If you still don’t see the recovery message repeat these steps again. iTunes will give you the option to restore from a backup or set up as new. You, of course, would chose "new".

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