It's probably just that my sim needs to be replaced. I don't have problems using either of them as long as I don't try to use data while on the phone, just like the limits of the original iphone and edge. I was on 3G too so I shouldn't have had a problem.
They said they were fine with using someone else's upgrade but were not prepared when Apple wanted the 3GS to come with a new sim. Apple is the one who wanted the new sims to be used but at&t said as long as your sim has a 3G logo on it and worked in a 3G phone then it should be fine. I think it is just apple trying to have the newest equipment in the phone for best performance.
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