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This happens when no sim-card is inserted or your carrier's network is not available. Try to check the sim-card contacts or put it into another phone and see whether it works there. If the sim-card is defective you generally can exchange it for free in the nearest office of your wireless-carrier.
When the phone says "emergency calls only" it means that the phone has found a network, but it can not register in it due to the problems described above. For emergency calls network registration is not required, it is made for so you could call 911 even without any sim-card installed.
Sounds like the provider (AT&T, Verizon, etc) has that particular SIM card (and thus account) suspended or otherwise disabled. Call them up or stop in and find out why that would be.
sim is the card you were given to work your phone and make calls.
Well it sounds like you need to put your simcard in the phone and it will be working.
If you need assistance you should have a customer rep in store help you.
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