Finally, thanks to this message board, there is a solution that works! I have an iPhone 4, that was off contract but locked to AT&T, and was on the AT&T GoPhone Prepaid $0.10/minute plan without data.
KEY POINTS
A) The phone MUST be unlocked to recognize the T-mobile microSIM. AT&T does unlock iPhones now. I put in the request, and then received unlock instructions without 2 hours. You just plug in you phone to iTunes, back it up, and then "Restore" and it is unlocked.
https://www.att.com/deviceunlock/client/en_US/termsAndCondition
B) You need a T-mobile microSIM card. I happened to have one, I'm not sure it if it was activated or not but it worked. These can be found for a few dollars on eBay.
C) I'm not sure if what you have to input is case sensitive or not, if it's capitalized below best to be safe and follow the same format
INSTRUCTIONS:
1) Insert T-mobile microSIM
2) Navigate to:
Settings > General > Cellular > Cellular Data Network ("Cellular Data Network" will only appear with the T-mobile SIM inserted)
3) With this screen still open, remove the Tmobile SIM, and re-insert the AT&T SIM, but **stay on this screen** and enter in the following under the "Cellular Data" and "MMS" sections:
CELLULAR DATA
---------------------------
APN: wap.cingular
User Name: WAP@CINGULARGPRS.COM
Password: CINGULAR1
MMS
----------------
APN: wap.cingular
User Name: WAP@CINGULARGPRS.COM
Password: CINGULAR1
MMSC: http://mmsc.cingular.com
MMS Proxy: wireless.cingular.com:80
MMS Max Size: 1048576
MMS UA Proof URL:
4) Go back by selecting "Cellular" then "General".
5) Hopefully it's fixed. Try to send an MMS. Make sure "MMS" and "Group Messaging" are set to 'On' under: Settings > Messages. (Turn on iMessaging here also for good measure)
Good luck. Thank you to everyone who posted the solution on here. I had been trying for hours trying to work this out, and tried every suggestion possibly found on the internet. This is only one that worked.