i have bought my phone in late october and was using my old sim card, which i had been using literally for ages... it was the regular sim card where they had to punch / cut it to convert it into a micro sim...
prior to the 5.0.1 update i used to receive the "invalid sim" message every now and then but didn't got bothered since the phone was operable after a reboot... then last friday (11.11.11) i heard that an ios update was released so i updated my phone and went out directly only to face terrible network connection if any and was not able to communicate with my phone...
at first i thought it was a glitch because i was using stereo wireless bluetooth headphones along with every imaginable feature on the phone turned on... so i started to experiment by turning each feature off to find out which one was causing the problem... tough luck, and my situation did not improve one bit... then i started investigating about this issue and found out that there were quite a few people having the same symptoms... i tried every imaginable thing that was described on this and almost every other forum / discussion boards i could find...
i resetted the phone by itself, i resetted the phone a couple of times via itunes, i tried to reinstall the ios 5.0 via the ipsw file i found on the net, which did not work, i downloaded different 5.0.1 ipsw files in case it was a weird software issue with my downloaded file... nothing worked...
i never ever thought that this could be a sim card issue, since it already sort of worked prior to the update, then i read here from a couple of my countrymen (turkey btw) along with people from other countries, that they have solved the issue with replacing their sim card, my fellow turks stated that they have solved it with replacing their sim card with a 128 k microsim card to be exact... so i gave it a try and replaced my card on monday... they were right, i do not have any problems with my cell carrier network or anything in general and since the signal is stable and perfectly in order the battery drains less (if you have poor or no reception your battery will drain much faster)...
so, what i can advise you with is that you get your sim card replaced with a microsim, preferrably a 128 k one if your carrier provides them, it definitely solved my problem and believe you me, i have tried almost everything... 🙂