It sounds like your phone is not unlocked. Did you get the phone through a different provider and your sim card through some one else? For ex, here in US, a cingular SIM will not work in a Sprint phone.
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itsc hance if ud ask me coz..."network busy" message appears only when there is a problem with your network..there is nothing wrong with ur phone..it wud work perfectly fine..try inserting the sim card and refreshing it..if this problem prolongs..ten try caling ur network provider...coz they r the problem and not ur phone..All the best