you will need to contact your network to get the puk code to unlock the original sim or get the phone unlocked to any network which there is no free way of doing on that model
problem can be solved. When a phone freezes any time you want to use the camera, it means that the camera is damaged.
It is a common problem for Sony Erickson phones. The camera of the phone is jammed and the lens has been distorted that is why the phone always hangs or in some other phones it shows camera error.
You will need to changed the camera for it to be able to display and for it to stop freezing the phone.
Had this problem myself. It worked fine at first then just wouldn't switch on. This is how I solved it:
You should just be able to press and hold the * key while writing the text until you see the 'open book' icon on the top line of your screen.
If this doesn't work go to 'settings' select 'Language' then select 'Writing Language' then uncheck 'Standard ABC' and check 'English'. This should solve the problem.
If the 'open book' icon still does not appear hold the * key down until it does and you should now use this to activate/deactivate as required.
Hope this helps. It did the trick on my T303.
try this :
This works on most mini electronic devices like cellular phones and degital cameras etc .
it sounds crazy .
Remove the back (or Cover ) of the phone( or Camera ), battery, and SIM if your phone ( or Device ) uses one , DIRECTLY
.
Then, with a q-tip (or something similar), dab the connection points (shiny, goldish) on the battery, SIM, and phone. This should aid in drying.
Finally, place all contents in a bag of uncooked rice (separately, do not put back together just yet). it sounds crazy , but it draws the moisture out.
It normally is working after just 7-8 hours, but I would wait 12 hours or even 24 hours before attempting to use (just to be sure).
beware the water damage, despite being dry now, will void any warranties. Also, the phone's hardware is now weakened and if you drop it, the green mother board and circuitry could shatter - so be more careful.
This does work on electronic devices aside from phones as well. Simply tailor it to your device. If you do not have a SIM (Verizon phones, cameras, all others), remove only the battery. If you have an iPhone/iPod or GPS and cannot remove the battery, simply make sure it is all the way off, then put it in the rice bag. All electronic devices react the same to the rice trick.
related link is here : http://www.youtube.com/watch?v=0-Otjgd48nY
Get the new handset unlocked the easiest and fastest way to do this is by a reputable Market dealer I use my Local shop in Darlington Clock Tower Market in the UK is costs between £5 and £15 then Just swap the SIM cards out.
Operator locks are reliant on the IMEI number of your phone and are a pain I had an LG Chocolate on Virgin, terrible reception it's now unlocked I can use any SIM now on the same handset.
You-Tube video "N-NC40CPKsA&feature=related" placeholder (do not delete) 
