Transfer an externally dialled call - not working


I’m experiencing a problem when trying to transfer an externally dialed call using *2 when originated from the PBX. Can someone please try and replicate this and see if it’s happening across the board or just on my system - here’s how:

  1. Call an external number from the PBX
  2. When answered dial *2
  3. Do you hear ‘Transfer’? Is the called party placed on hold?

I can hear DTMF but there is no output on the asterisk CLI even at 6 verbosity or running SIP debug.

Incoming call transfer using *2 works fine.

My system:
AsteriskNOW 1.7.1 - upgraded to asterisk 1.8 following this thread:
Upgraded all modules and asterisk components to latest versions as of 12.07.11

If anyone has any ideas to try or solutions please let me know.

Thanks in advance