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First you need to unlock your phone before you put tracfone sim card on that phone. Make sure you have appropriate LG neon GT365 unlock code example : if your old sim card using t-mobile you must use t-mobile unlock code for your phone not tracfone. You can get lg unlock code from online seller with lower price and quick turnaround.
Really brilliant :D, just kidding. I think your phone not yet unlocked, make sure you follow the details instruction from orange how to insert LG GT540 unlock code in your phone. And make sure you got the correct lg unlock code from your network provider.
I also have a x426 from 2003 and it wont work with the new ATT sim cards either, This is because of the Cingular/ATT merger which created a new network. The older original ATT phone must be unlocked to use a sim card from the new merged network. Try calling ATT Mobility customer service and request the subsidy unlock code. They are required to give it to you upon request, but it takes several days usually to get the code. I know because I used to work at a ATT call center.