Sony w850i

[simox]

What is exactly the message you get? Insert correct SIM card(1) or it ask you to enter the phone lock(NOT sim lock) code(2)? If it is the (1) then follow hyperion17's link, otherwise do what seamonkey said.

we went back into setool and read phone, still with netwok lock

You will see your phone as locked in SETool2 Lite even if it is unlocked by patch, and accepts any SIM card. So put a SIM card from another network provider to make sure it is really un locked.