ACTIONS WILL TAKE EFFECT WHEN THIS IPHONE CONNECTS TO THE INTERNET.

Is the phone lost? If so, the battery could be dead, a person could have found it and removed the SIM, the iPhone could have been restored. Find My iPhone will work with iOS 5.1.1

Settings > iCloud on your phone, is it the same account you are trying to acces your phone from via find my phone?

Use your computer browser with this url: https://www.icloud.com

Alright. You have the iCloud account active and Find My iPhone is turned on. When you go to www.iCloud.com, you sign in with the iCloud ID the phone is logged into. The phone has been activated. You say you are connected to the Internet, have you verified this by trying Safari?

So you atrying to do something to your iphone. Can iCloud see your iPhone location?

Typing in all caps is not necessary, we are not blind and it is considered rude. Log out of iCloud on the computer. Try a reset on the phone. This will not affect data at all. Hold the sleep/wake and home buttons together until you see the Apple logo and then release. After the phone restarts, log back into iCloud and try to locate the phone. It may not be recognizing the phone yet.

You say you removed the phone and added it again. Do you mean that you removed the phone from the iCloud on the computer. How did you add it again, by just logging into iCloud?

Try to Sign out from iCloud.com on your computer and sign in again.