i just updated my iphone to IOS 5 and I used to use the gevey sim to unlock the phone. I did preserve baseband so I could use the gevey sim on IOS 5, now the problem is, I'm stuck on "SIM not valid" and it also says "Only compatible SIM cards from a supported Carrier may be used to activate iPhone. Please insert the SIM card that came with your iPhone...blah blah blah"
I attached a photo of what my Iphone looks like, if anyone knows how to bypass this, it would be truly appreciated!

You will need to use redsn0w to jailbreak and hacktivate the phone, install Cydia, download ultrasn0w, and finally patch your CommCenter (search the forums for Wortel's commcenter patch instructions or the cydia repo). Then you can use redsn0w or SAM to remove your hacktivation (revert lockdownd to stock) and then use SAM to activate normally through iTunes to fix your push certs / iMessage / Facetime.

I did jailbreak using redsn0w but as soon as I turn on the phone, I'm stuck with the screen that I posted a picture of earlier. I did try calling 112 but the cops showed up at my house at 2 AM hahahaha. Any idea of what I should do, calling the 112 makes the activation screen come back after I lock the screen and I can't keep calling 112 or I'll get in big trouble this time lol.

Hate to say I don't know what to tell you -- you may want to shoot an inquiry to the GeveySIM people. This is one of the reasons we don't recommend them -- they don't work well with iOS 5.x (even with the old baseband) and since they rely on dialing 112, it's illegal...

In any case, based on how you have described, what you're doing SHOULD work, so I'm at a loss for what to recommend to make it better . You really should just shoot the Gevey SIM guys a support request if you can.