When I bought iPhone 2G for the first time I was a complete newbie to iPhone. The first thing which I look for a way to import all my sim contacts into my iPhone contacts. FYI iPhone has inbuilt feature using it, you can quickly import your Sim Contacts into iPhone.
To use this Sin contacts transfer feature all you need to do is.
Go to Settings > Mail contacts and calender > scroll down > Click on Import Sim contacts
Make sure your iphone is charged enough before performing this feature.