The choice of SIM card shouldn't make a difference when activating the iPhone, even if it is locked to a particular carrier. It sounds like your iPhone is not detecting the SIM card. Have you tried more than one SIM card to rule out the possibility of a defective SIM card? If the iPhone won't activate, or read the SIM card even after trying more than one SIM card there's the possibility of a defective SIM card reader.
A diagnostic at a repair shop or the Genius Bar at an Apple Store would tell you what the problem is.