No S card installed No S Invalid S card iPhone

Hello,
Im getting No SIM card installed on my iPhone 4. I got a new SIM card and 15 minutes later same error. Ive reset network settings and also tried a restore with no luck. Genius Bar recommended wiping and starting over without restoring from Backup. Was going to erase mine and start over tonight but....
My wife bought a brand new iPhone 4 from AT&T today... At exactly the same time both of our phones came up with the No SIM card installed message! Her brand new iPhone 4 said the same thing.... This is after I syncd it up to iTunes, only a few songs and a bunch of apps.
There is something going on with either the network or something with the phone or iTunes causing a problem with the phone. Ive almost pinned it to something in iTunes 10.1 because I think this started happening about the same time I updated to iTunes 10.1. Both of us are now on iTunes 10.1.1.4.
iOS 4.2.1 on both phones... Anyone else experiencing similar issues?
Thanks