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Xenon GR500 unlocked, but not working with new SIM

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Xenon GR500 unlocked, but not working with new SIM

AT&T provided the code and we unlocked the phone.  My son flew to Madrid, bought a prepaid SIM, but the phone won't work?  What did we neglect to do correctly?  Here's what happens:

 

1) If putting in my new sim after my at&t one was in, it first asks me for my pin.  This was given to me when i bought it, so i enter it and then it goes to touch calibration. 
2) after I do touch calibration, it goes to the start up tutorial which tells you how to navigate the phone.
3) when i finish that, it displays the message "new sim card inserted.  copy sim card contacts to phone address book?"  to which i answer no.
4) then if i try to make a call, right after i dial, it gives me the error message "service unavailable"

the same stuff happens if i use my at&t sim except i don't have to enter a pin at the beginning.  also, when i use the new sim, about a minute after finishing the tutorial i get the error message "sim not provisioned MM #2"

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Re: Xenon GR500 unlocked, but not working with new SIM

Your service has been shut off or suspended (meaning reported lost/stolen) you need to call at&t and tell them that your SIM card is not registered with your service
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