I have restored my phone and its saying incorrect sim....
Any way to fix this?

you need to check the firware version you restored to, look at the first step in this guide to tell you how
http://hackint0sh.org/forum/showthread.php?t=6637

1.1.1 will always give incorrect sim till its hacked
1.0.2 can be solved by doing a virgin restore and unlocking again unless you used up all your unlock attempts then only ipsf will work

I have 1.1.1 how can I hack it?

you can't at the moment it will be stuck on activation unless you have an att contract to activate with. As yet, no other activation methods work

I had used anysim on it!
I told at&t about my situation and they sent me to apple.
Would I still be able to get it activated or I have to buy a new one?