Trying to update my iphone to 4.0 for apps and now its stuck on emergency calls only. please help !

I have recently tried to update my iphone 2g to the latest version so i can get new apps. Pluged it it to my PC & itunes wanted to sync everything now that it has restored itself after several hours its now stuck on the "emergencey calls only" screen. If anyone has any idea how to fix this id appricate it a lot thanks!

as a matter of fact my USB is plugged into my PC & my iPhone & this is what Itunes is telling me.
The SIM card inserted in this iPhone does npot appear to be supported.
only compatible SUM cards from a supported Carrier may be used to activate iPhone. Please insert the SIM care that came with iPhone or visit a supported Carriers store to receive a replacement SIM card.

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