Or do you mean Restore it from iTunes? It didn't give me that option, I don't think. Only the option to activate it.
yes i restored it in itunes... when i took the old sim out of the original iphone it would still let me use it like an ipod touch... it still showed up when i plugged it into itunes. i restored it with no sim in it. after it was restored i popped in my micro sim and was prompted to activate it when i connected it to my computer.