Sims card not recognized

I went to update my sister 3gs and after the update from 4.3 to 5.0.1. the phone is asking for a valid sims card and I can't activate it. (its is not jailbroken either.) I was working fine before the update. I bought a new sims and nothing. even checked blow in the slot and nothing.  I even restored it in a new windows pc and still nothing. What else can i do to fix this problem?

yes the SIM is from the same carrier, which is AT&T. Took it to the AT&T store and they could not help. they directed me to the apple store. so i sent my little sister to the apple store and she told me that they couldn't help. Knowing that  I my work on computer. that might be still a chance to repair this problem with a new software update, that I am also suprice apple has not rolled out with one after the jailbreak that happens weeks ago.

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