UPDATE AND SOLVED!!! Started chat with Verizon online and got the # for Verizon technical support. Told him about the successful update and then mentioned this thread about the SIM card. He called Apple for me and cleared the support without paying. First I got a regular technician who tried just abotu everything I already had. Then I mentioned the thread and got sent to a senior technician. After being sent to senior technician, he seemed to know the problem and what to do, he said my phone had the "Wrong Information Activation" and sent ticket up to engineer and called back about 30 minutes later and this is what finally worked, I have Windows 7 and the new pink Itunes (if you have a Mac I assume this also would work if you find the Software update folder on your computer) I would try this before calling Apple it may have been resolved in the update 🙂:
Click Start
Type in Search Bar:
%appdata%
Click Enter
Open Apple Computer folder
Open iTunes folder
Open iPhone Software Updates Folder
Delete the Restore (mine was the one below)
iPhone3,3_7.1.2_11D257_Restore.ipsw
power off phone and make sure it is unplugged from computer
hold down the home button and plug back into computer until Itunes opens and says it sees phone to restore
Click Restore, click restore and update
follow directions to download update 7.1.2 again
Came to Hello Screen and this time NO SIM CARD MESSAGE!!!!!! got to Enter Wifi password and saw the home screen a moment and then said: Restore in Progress
Restoring iPhone from backup
And it was fixed!!