FOLLOW UP:
I just got off the phone with Apple. The Apple tech was in communication with ATT whilst I was on hold. She said ATT told her that NO SIM card would work in my new 4S at this point. She said it was a communication error between the two companies. She is trying to contact a nearby Apple store for me so I can exchange.
An answer and resolution is at hand. Finally. Thank you!
LAST NOTE ON THIS ISSUE:
Julie at Apple made an appointment for me at one of the Apple stores here in St. Louis. They had ATT reps in the store. An ATT rep and an Apple tech there worked on the problem at length. In the end they activated the phone that was linked to the 4S when I purchased it on apple.com with a new SIM card then activated it in the 4S. Lastly, they switched the SIM cards with the iPhone 4 that had my old SIM card. At that point I had my new 4S and my wife inherited a very fine 4, replacing the 3GS she had.
So... if your iPhone was bricked with a call to ATT to switch phone numbers before activating, (although my 4S would not activate, hence my call to ATT) then go to an Apple or ATT store to have it worked on. After watching the ATT tech work for resolution, I can say with 100% certainty that there is nothing you can do at home to fix the problem. It was very involved.
I hope both Apple and ATT communicate with one another and with the public about the proper procedure to take advantage of eligible lines of upgrade for iPhones before the next roll out.
Good luck to all and have a groovylicious Apple experience!