It didn't work when I tried it (with an ATT sim). I wish it did as I'd like to use my phone while the carriers figure out this inability-to-activate mess. If you figure out how to bypass activation, please post back.
I carved down my 3gs sim and put it in the 4s which was upgraded from a different number in my plan. It still required activation and Itunes still showed the wrong number. ATT says they have the sim cards and Imei or whatever numbers straight. Now I just have to wait on Itunes. I'm stuck in limbo with no phone. It's almost kind of calming.