I have an Iphone 3g.

I can't get itunes to recognize the sim. I tried everything.

I restored my phone to 3.0 and it is stuck in emergency calls only. I just want to be at the screen where it shows the apps. When i plug it into itunes it says "The sim card inserted in this Iphone does not appear to be supported"
The phone came from the U.K.

I am aware that the phone is locked and know that Blacksnow came out today but i can't use it because the phone is stuck in emergency calls only.

PLease Help.

You can use redsn0w to jailbreak, it will jailbreak and hacktivate. This screen is normal. Then you can install an unlock from cydia (either ultrasn0w or blackra1n depending on your baseband)

Blackra1n does not support jailbreak of OS 3.0 which is why I recommended redsn0w

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iPhone 3GS 32GB factory unlocked (3.1; Pwnagetool, Cydia, OpenSSH)
iPhone 8BG (3.1.2; Pwnagetool, Cydia, OpenSSH)

Thank you so much, that did the job perfectly.