Yes its barred mate and if your in the UK (it sounds like it) then its an expensive paperweight
Try to sell it on eBay or on this or other forums, it can be still used in other countries where it is not barred.
I've not seen any free IMEI changing solution for the LG8120, anyway its very illegal in the UK, and not worth a stretch in the slammer (yes you will get a stretch even for a first offence, thats how keen they are on this matter at the mo')
Sell it mate, and learn a very valuable lesson
