What's wrong with my SIM card or is it my iPhone 2g?

When I put my iPhone 3G's SIM card into my iPhone 2G this is what I get:
http://i952.photobucket.com/albums/ae6/OSDCrusher/photo.jpg?t=1260141719
What is the problem here?

Restore the iPhone and insure that it activates once the restore is completed. Once it activates, you can then choose your last backup to restore from. Something that you have done to the phone is not allowing it to use that sim that you have now.
It is an official AT&T sim activated with an iPhone plan isn't it? If it's a sim from a GoPhone plan, it won't activate a 2G iPhone. Only GoPhone sims will activate a 3G or 3GS iPhone.

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