"Inside a simulation" means several things. A brain in a vat, plugged into Second Life 2.0, is "inside a simulation". But you want the brain itself to be a simulation too, yes? I certainly don't believe that every simulation of a brain is conscious. A sign with a smiley face on it is a crude "simulation of happiness", but I think we will agree there's no actual happiness around in that situation. There is a continuum of possibilities between a smiley face and a happy person, and at some point on that continuum you get the real thing, but certainly not everywhere on the continuum.