@:-) sure here is the detailed problem/resolution:

Problem:
  - IPhone 4S (ATT locked), when received it was not activated at all. I got it w/o sim card that came during the purchase. If I tried using my sim card from other IP4S, it would not activate telling the number does not match. I assume the number it displayed was of the sim card that was originally in the IP4S when it was purchased.

 - Jailbreak (absinthe) wont work as it also requires the IP4S to be activated 

Resolution:
 I tried three microsims - none of them worked. I had a regular sim lying around so I just cut it by myself and inserted into the IP4S - surprisingly it worked. So I am just assuming that if we use the sim that was not previously used for activating any iphone could do the trick. Obviously I have not and cannot test it with other iphones :)