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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.