Phones connected to VG224 can only place calls when using pulse

We have serveral Cisco VG224 gateways conneted to Call Manager Express. We also have ATA186 adaptors as well as IP phones that are working fine.
We can call phones attached to the VG224 gateways, and when we set the analog phone attached to the VG224 to pulse mode we can call all the other phones. The issue we are having is that the phone will not call out when in tone mode. It seems as if the system is not recognizing the tone from the handset when the buttons are pressed. We are using SCCP, and G.711.
Any recomendations and advice would be greatly appreciated.
Thanks in advance.
mikebarilAsked:
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bfasonCommented:
Look at your mgcp configuration and look for how you are handling dtmf. Most common is

"mgcp dtmf-relay voip codec all mode out-of-band"

If you are missing this then add it and do a "no mgcp" then "mgcp"

Hope this helps
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mikebarilAuthor Commented:
The mgcp entry was not present, so i added it and followed your steps and it did not help
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