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I've just upgraded to an iPhone 4S, and I want to use my old 3GS like an iPod touch. I have updated the software using iTunes and now on iTunes it says:

There is no SIM card installed in the iPhone you are attempting to activate.

How do I get around this?

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The one piece of information missing from this question is to which carrier the iPhone 3GS was locked to at the time of sale. If it was factory unlocked, then you won't need a SIM card to activate after each restore. Otherwise, you will need a SIM from that carrier (it need not be an active SIM) or will have to jailbreak and unlock the phone yourself. –  bmike Feb 23 '12 at 2:49
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1 Answer

Is there a SIM card in it?

If not, go to a store and pick one up for a couple of pounds/dollars/rupees/whatever, pop it in, activate it, and hey presto you have an iPod touch. You need to keep the SIM card in otherwise it will not function.

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