As said above, we got our daughter an iPhone 4 from a friend.
The battery was completely flat so we have charged it and inserted the new sim card.
When turned on, it is asking for a password to the iCloud, which our friends have never signed into. Their apple ID is from an old account and they can't remember the password.
Please, fellow OzBargainers, give us words of wisdom. We are going on holiday tomorrow and need to get this sorted.
Without the password for the previous users Apple ID/iCloud, then the phone will not be much use to you! If you can get the previous owner to connect the phone into a computer that they have their iTunes account on, then you may be able to unlock the phone from there. Apart from that I am not much help!