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Remove the SIM card from your phone, clean the contact point (the copper part) of the SIMCARD with a rubber eraser then insert the SIM card back again to your phone.
If SIM card is still failing, then it is already defective. Get a new SIM card.
The Simcard might gone bad due to some reason, try this sim to other phone, if it not works then issue another sim to your service provider.
otherwise the contact at phone may gone bad, needs repair.
the following are the possible things 1 . check the direction in which it is inserted. 2. clean the sim card holder if any dirt is accumulated . 3 . check whether the sim card registration is failed. 4. insert a small paper above the simcard if its loose
bring it nokia center!!! my 5320 goes like that also but I try other sim like smart I think it will work!!.. my cp pops that kind of message when i inserted globe sim card! and i bring it yesterday to nokia center and the solution they said to made is to fix the program so ishould wait for 3 days to fix it!!.... maybe ill get it on thursday or friday!.. ^_^