Currently Being ModeratedDec 6, 2012 6:09 AM (in response to Hornsan1)
Here is Apple's answer to error -1: http://support.apple.com/kb/TS3694#error1
As error 1 (or -1) indicates possible hardware failure, and your original symptom is also possible hardware failure, I would take the phone to an Apple store for diagnosis and likely replacement.
For your original problem, it's also possible you have a bad SIM or AT&T messed up your account provisioning, so calling them is a good place to start.
The other possible cause of error -1, which isn't mentioned in the above article, is a jailbroken phone. You would probably know if it was jailbroken.