Hi i just got an iphone 4 and im having a massive problem .Please reply quick?

I got the iphone and unwrapped it (it is factory unlocked ) so i figured out how to put the sim card in .I tried to put a normal sim but it didnt work so i searched and found out u need a micro sim. I tried to cut sims and none worked. However without the sim card , i connected the iphone 4 to itunes and it keeps giving me the "we could not complete your itunes store request. An unknown error occured (-9808) but it works if i click on the itunes store but if i click on my iphone 4 it dont work. it didnt give me any instructions of system update or upgrade . I got a professional to cut the sim and fixed it in my iphone .For some minutes it has only one bar then after that NO SERVICE appears please help