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That is what we call an "unactivated phone." Even if you used a custom restore, run redsn0w, and make SURE the "Activate Phone" box (whereever it is) is checked. I would also advise keeping the SIM out of your phone until you get the chance to install ultrasn0w from Cydia.
Hey it is me again. I bought an iphone 3g. It already had 3.1 installed on it so I went through each step here
Now all I see is the usb to itunes screen with an emergency call slider. iTunes tells me that my SIM doesn't appear to be supported. Am I doing something wrong. Thanks again for all the help thus far. I can't wait to get tzones working.