Molecules interact through the electromagnetic and gravitational forces. Since these forces are nigh-perfectly understood, any system of molecules can thus be simulated, given a sufficiently powerful computer. (or enough time) Since the brain must be made of molecules, as all other matter in the universe is, it must simulatable. Thus, it must be possible to produce consciousness on a sufficiently large computer.
A true artificial intelligence would not be running on the molecular level, but the same principle applies to the more complex structures in the brain, like neurons.
Of course, the way out of this is to assert that the brain has something more to it than molecules, but I haven't seen anyone back that up.
Great! So now we reduce the discussion to molecules. OK, so let's do that for a moment.
You are making a HUGE leap of faith to say we can recreate the brain and what it is capable of, emotions, calculating decisions 5 years down the road, deciding what morals are correct (today) based on the color of the sky perhaps, etc...
Just because you can make an assertion, does not mean it is possible. Just as I can assert God can create a square circle, it doesn't mean it will ever happen.
So, if creating a collection of human beings, as we are today in a program was possible, I might be willing to have that discussion, but we are no where near that, therefor this OP, if insisting upon such a thing, reduces to wishful thinking.
So now we are all staring at each other pointing a finger saying "wishful thinking"! Now it's a party!
Seriously though, my point is the OP asserts quite strongly that we can sufficiently create a SIM world as to compare it to what challenges God might have had when creating this universe. I just don't get it.
Again God, is all powerful, but that doesn't mean God has no limits...