Originally Posted by John Clark
That sounds like a service book problem. Options >Security Settings >wipe handheld and then add again. I had this very problem once after restoring a user's data to a new device from a backup then trying to plug in and activate via USB. Fix was to wipe the handheld first then re activate. When we did it we did an OTA activation the second time and it worked just fine.
I did that via USB. I didn't try an OTA activation, I really shouldnt have to. But that is an idea.
Any other thoughts? By the way, it is with cingular.