I know there is a simple answer for this, but I was wondering if other people here are having a similar problem to mine.

When I have my phone hooked up via Bluetooth, it works perfectly fine. I wanted my wife to be able to dial using the keypad on the radio console so that everything isn't done by the steering wheel. It says in the guide, that you can press the "phone" button and then dial. Then after the number is there press the "phone" button again and it will dial, or hit the "answer" button on the wheel. Neither of these work when the number is inputted via the keypad. I haven't tried it with the cradle yet, but I wanted to know if anybody else had the same issue? Thanks.

I use the Bluetooth all the time.
Press the Telephone button on centre of dashboard to activate and then dial in tel no. via the pad and then click the green button on the steering wheel and it will then dial out. To finnish the call click the red button on streering wheel and then click 'C' on tel button on console to disconnect from Bluetooth. Hope it works for you.

Funny, I tried that too, and it didn't work. Its not a catastrophe because I can do the dialing by voice, but lets say the winodw is open, or the passenger wants to dial, it just won't work. I don't get it.

i press the green button from the steering wheel then dial a number then press the green button again. Works every time, i would test to see if the problems you are having work with someone elses phone. That way you can tell if something is wrong with your pti system or just your phone.

I also have a sony ericsson phone and everything works great for me.

rweintra, when you first press the phone button on the center console or pull the green answer paddle on the steering wheel, the LCD should display "Bluetooth". You should then be able to dial the number with the radio keypad, pull the green paddle again and get connected. I do it all the time and it works well with my V710. Do you get the Bluetooth message as well? Maybe the one time you tried it with your wife the phone was not linked for some reason (on rare occasions my phone will not pair automatically when I get in the car and I have to do so manually from the handset.) 

I get the Bluetooth and as I said above, it works fine. If I start with the green paddle, enter the number, then use the green paddle again, its fine.

BUT...
My question was about the phone button on the actual radio face. It says in the books that you can press that, see the bluetooth connection, then dial on the keypad and press the phone button again to make a call. That won't work.

As far as I can tell, green answer paddle on the steering wheel and phone button on the radio console do pretty much the same thing. I find the paddle easier to reach and use that method most of the time. However, I just tried this morning to use the phone button instead (press, dial number, press again to send), and it works the same. If dialing out works with the paddle but not with the button, I don't think the problem is with your phone.