New iphone doesn't recognize my sim card?

Got my iPhone 4 yesterday. Never had one before so I was very excited but turns out it doesn't work.
I went to a store to get it activated and to get a smaller sim and it worked fine
When i got home there was i message on the screen saying that it didn't recognize my sim.
I took it out a few times, restarted the phone, connected it to itunes and restored it (wich's just giving me a blank screen), …
So now I'm back to a resetted iPhone wich is still telling me that there's no sim card and I can't remember the password for my Wi-Fi…
I'm really scared that I will have to send it back and be stuck without a phone for 10 days.

As you said it worked when you inserted sim but after some time it's not recognizing your sim. I'll suggest you to go to your service provider and ask them about this, I think they can fix it.

If they are unable to fix it then your iphone is probably locked to some carrier. If this is the problem the you have 2 ways to fix it

1) Contact iPhone seller and ask him about this. Ask him to replace it or ask for refund

2) Jailbreak your iPhone and then unlock it using UltraSn0w

Take it back and have them fix it. Something has gone wrong with the SIM card.

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