SIM card not valid after update

I updated to the iOS5, then I hooked up my NON-jailbroken 3GS. After "updating" everything this message appears:
The SIM card inserted in this iPhone does not appear to be supported.
I took my phone to my carrier, AT&T, and they cleaned the SIM card, didnt work. They replaced the SIM card, it didn't work. Tried to restore my phone, didn't work.
Any advice?

Just to make sure it wasn't a PC/Mac issue I have tried the following on each of 2 different windows PC's and a Mac & a MacBook Pro:
New installation/download of the Software update for iPhone 4, and each time putting the phone into recovery mode. I have also been using a new micro sim from O2 - obtained first thing this morning.
You do the maths on how much time this has taken, and guess what it still doesn't work....!
This has to be the most direct way of getting someone to upgrade to a new phone - the day before a new iPhone comes out - coincidence.......hmmm.
Just as a point of interest the iPhone was replaced in May this year, so is relatively new.
I do find it had to believe that there is no word from Apple as to the reason &/or a resolution.
COME ON

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