I'm an AT&T subscriber. History of this iPhone is: I unlocked it (for gags) under 1.02 using AnySIM and then did the revirginize using geohot's weekend in Austin IPSF web page spoof and then upgraded to 1.1.1. I then did a jailbreakme.com to get apps loaded. No trouble with any of these things.

I did a restore of 1.1.1 yesterday (preparing for the impending release of 1.1.2) using iTunes 7.4.(whatever was current just before 7.5) and ended up with a PIN locked SIM message and the phone did not present a dialog to unlock as it normally did. It said I needed to use a newer version of iTunes to activate. I upgraded iTunes to 7.5 and tried to activate. This version said I needed to insert a valid unlocked SIM. Chicken or Egg problems abound. My iPhone did have a lock code programmed for the SIM at the time of the restore. So I thought I was hosed.

I tried various things. What eventually worked was using iTunes 7.3.2 to downgrade the software to 1.02. The downgrade worked but I still couldn't activate using iTunes. So I activated with Independence 1.2.5 and then I could unlock the SIM PIN as normal. I turned off the SIM PIN lock and upgraded that to 1.1.1. All is well again.

This is just an FYI in case anyone else has this problem. I don't know if turning off the PIN lock in my SIM before the original 1.1.1 restore would have just worked. I suspect it would have. It's also possible that Independence could have activated the 1.1.1 restore. I didn't try that until I had already downgraded to 1.0.2.