Sim won't read after update to iOS 5?

I updated my iphone 4 to ios 5 and the handset no longer recognises the sim and says it is invalid for this carrier. My handset is a replacement phone from insurance company. According to Apple it is registered with Vodaphone, even though I am with 3 and it was working fine until update. Apparently this is a common problem as ios 5 restores factory settings and replacement handsets are screwed. But no one will take responsibility. 3 have no idea what I'm talking about and don't really care. Insurance through carphone warehouse can't unlock phone as it's a vodaphone problem. I'm not a vodaphone customer so they are not prepared to unlock the phone....
Stuck paying for a phone that I can no longer use. Apple sort this out! Your update, your problem!

Yes 3 is the name of my carrier. No SIM from their network will now work in my phone as it has locked to the factory (vodafone) settings. Apparently this is a major glitch in the ios 5 software, any handsets issued as replacement phones through insurance agencies are reconditioned phones but ios 5 ignores the reconditioning and locks up everything.

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