Open cydia and make sure you have 4.2.1 shsh saved, it will show at the top of the cydia home screen. Back up your iphone to itunes, hold shift and select restore and browse to a stock copy of 4.2.1 for iphone 4. You can download a copy of stock 4.2.1 from iPhone Download Blog Once you restore, jailbreak again with greenpois0n rc6 from GreenPois0n
I'm not 100% about pre-paid att sims, I dont have much experience using them. But if you're not getting picture messaging to work properly, restoring would be your best bet to fix it though.