stuck on setup screen after updating to ios 6

I have an iphone 3 that was being used as an ipod but when I connected it to my pc itunes wanted to update it to ios 6 and I agreed. After the update it wants me to set it up as a phone and I can't as it has no SIM card and when I put my active cell phone sim card in it wont read it. I cannot get around this set up to continue using it as an ipod which is all I want to do with it. I was trying to put some music and aps on it for my daughter now I can do anything. Please help.