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If your LG CU500 says Invalid Smart Chip,It's locked to some network...You need to Unlock it from service provider lock to use other CHIP(sim card)..find the current network,country it's locked now and get the unlock code from the site Simpleunlocking.com/lg-cu500/rs16wp9/ for LG CU500 and unlock it easily.
If you have de code, try this:
Enter non-Cingular SIM card,power phone off and than on.It will say on the screen "invalid smartcard" enter 159753#*# It will bring next screen-enter your unlock code and press OK.
put the sim card turn it off and turn it on again in the idle mode insert 159753#*# then insert sim code and here it is but be careful don't insert wrong code many times or your phone will be locked forever!!!!!!