Need help with cisco 8961

I am having issues with a new Cisco 8961 phones I am trying out. I have loaded the most recent firmware on the phone. it is 9-2-3-27. I have a working SEP file but I can't make incoming or outgoing phone calls. I get a dial tone but when I try to dial a number nothing happens. It does not matter if it is a local extension or outside number. I have SSH into the trixbox machine and watch the asterisk -r prompt but I don't see any logs when I try the call. Inside of trixbox on config file editor I have edited the sip_custom file to add these lines:
tcpenable=yes
transport=tcp,udp

For the extension I have the follwing settings...

This device uses sip technology.
secret=pass
dtmfmode=rfc2833
canreinvite =yes
context=from-internal
host=dynamic
type=friend
nat=never
port=5060
qualify=no
callgroug=
pickupgroup=
disallow=
allow=
dial=SIP/108
accountcode
mailbox=108@device
deny=0.0.0.0/0.0.0.0
permit=0.0.0.0/0.0.0.0

The phone Status Message screen shows.....

7:00:59p DNS Timeout
7:01:00p DNS Unknown Host example.domain.ext
7:01:00p Updating Trust List
7:01:00p No Trust List installed
7:01:01p SEPE80462EB0E37.cnf.xml (TFTP)
7:01:02p VPN Error: VPN is not Configured.
7:01:25p File Not Found : /gh-sip.jar
7:01:25p Error Updating Locale
7:01:25p File Not Found : /g4-tones.xml
7:01:25p Error Updating Locale

The xml config is....
<device> 
<deviceProtocol>SIP</deviceProtocol> 
<sshUserId>admin</sshUserId> 
<sshPassword>password</sshPassword> 
<devicePool> 
   <dateTimeSetting> 
      <dateTemplate>D/M/YA</dateTemplate> 
      <timeZone>Eastern Standard/Daylight Time</timeZone> 
      <ntps> 
         <ntp> 
            <name>192.168.10.4</name> 
            <ntpMode>Unicast</ntpMode> 
         </ntp>         
      </ntps> 
   </dateTimeSetting> 
   <callManagerGroup> 
      <members> 
         <member priority="0"> 
            <callManager> 
               <ports> 
                  <ethernetPhonePort>2000</ethernetPhonePort> 
                  <sipPort>5060</sipPort> 
                  <securedSipPort>5061</securedSipPort> 
               </ports> 
               <processNodeName>192.168.10.4</processNodeName> 
            </callManager> 
         </member> 
      </members> 
   </callManagerGroup> 
</devicePool> 
<sipProfile>
   <natEnabled>false</natEnabled>
   <sipCallFeatures> 
      <cnfJoinEnabled>true</cnfJoinEnabled> 
      <callForwardURI>x-serviceuri-cfwdall</callForwardURI> 
      <callPickupURI>x-cisco-serviceuri-pickup</callPickupURI> 
      <callPickupListURI>x-cisco-serviceuri-opickup</callPickupListURI> 
      <callPickupGroupURI>x-cisco-serviceuri-gpickup</callPickupGroupURI> 
      <meetMeServiceURI>x-cisco-serviceuri-meetme</meetMeServiceURI> 
      <abbreviatedDialURI>x-cisco-serviceuri-abbrdial</abbreviatedDialURI> 
      <rfc2543Hold>false</rfc2543Hold> 
      <callHoldRingback>2</callHoldRingback> 
      <localCfwdEnable>true</localCfwdEnable> 
      <semiAttendedTransfer>true</semiAttendedTransfer> 
      <anonymousCallBlock>2</anonymousCallBlock> 
      <callerIdBlocking>2</callerIdBlocking> 
      <dndControl>0</dndControl> 
      <remoteCcEnable>true</remoteCcEnable> 
   </sipCallFeatures> 
   <sipStack> 
      <sipInviteRetx>6</sipInviteRetx> 
      <sipRetx>10</sipRetx> 
      <timerInviteExpires>180</timerInviteExpires> 
      <timerRegisterExpires>3600</timerRegisterExpires> 
      <timerRegisterDelta>5</timerRegisterDelta> 
      <timerKeepAliveExpires>120</timerKeepAliveExpires> 
      <timerSubscribeExpires>120</timerSubscribeExpires> 
      <timerSubscribeDelta>5</timerSubscribeDelta> 
      <timerT1>500</timerT1> 
      <timerT2>4000</timerT2> 
      <maxRedirects>70</maxRedirects> 
      <remotePartyID>false</remotePartyID> 
      <userInfo>None</userInfo> 
   </sipStack> 
   <autoAnswerTimer>1</autoAnswerTimer> 
   <autoAnswerAltBehavior>false</autoAnswerAltBehavior> 
   <autoAnswerOverride>true</autoAnswerOverride> 
   <transferOnhookEnabled>false</transferOnhookEnabled> 
   <enableVad>false</enableVad> 
   <dtmfAvtPayload>101</dtmfAvtPayload> 
   <dtmfDbLevel>3</dtmfDbLevel> 
   <dtmfOutofBand>avt</dtmfOutofBand> 
   <alwaysUsePrimeLine>false</alwaysUsePrimeLine> 
   <alwaysUsePrimeLineVoiceMail>false</alwaysUsePrimeLineVoiceMail> 
   <kpml>3</kpml> 
   <phoneLabel>Home</phoneLabel> 
   <stutterMsgWaiting>1</stutterMsgWaiting> 
   <callStats>false</callStats> 
   <silentPeriodBetweenCallWaitingBursts>10</silentPeriodBetweenCallWaitingBursts> 
   <disableLocalSpeedDialConfig>false</disableLocalSpeedDialConfig> 
   <sipLines> 
      <line button="1"> 
         <featureID>9</featureID> 
         <featureLabel>108</featureLabel> 
         <proxy>192.168.10.4</proxy> 
         <port>5060</port> 
         <name>108</name> 
         <displayName>108</displayName> 
         <autoAnswer> 
            <autoAnswerEnabled>2</autoAnswerEnabled> 
         </autoAnswer> 
         <callWaiting>3</callWaiting> 
         <authName>108</authName> 
         <authPassword>pass</authPassword> 
         <sharedLine>false</sharedLine> 
         <messageWaitingLampPolicy>1</messageWaitingLampPolicy> 
         <messagesNumber>*99</messagesNumber> 
         <ringSettingIdle>4</ringSettingIdle> 
         <ringSettingActive>5</ringSettingActive> 
         <contact>108</contact> 
         <forwardCallInfoDisplay> 
            <callerName>true</callerName> 
            <callerNumber>false</callerNumber> 
            <redirectedNumber>false</redirectedNumber> 
            <dialedNumber>true</dialedNumber> 
         </forwardCallInfoDisplay> 
      </line>  
   </sipLines> 
   <voipControlPort>5060</voipControlPort> 
   <startMediaPort>16348</startMediaPort> 
   <stopMediaPort>20134</stopMediaPort> 
   <dscpForAudio>184</dscpForAudio> 
   <ringSettingBusyStationPolicy>0</ringSettingBusyStationPolicy> 
   <dialTemplate>dialplan.xml</dialTemplate> 
   <softKeyFile></softKeyFile> 
</sipProfile> 
<commonProfile> 
   <phonePassword></phonePassword> 
   <backgroundImageAccess>true</backgroundImageAccess> 
   <callLogBlfEnabled>2</callLogBlfEnabled> 
</commonProfile> 
<loadInformation>sip8961.9-2-3-27</loadInformation> 
<vendorConfig> 
   <disableSpeaker>false</disableSpeaker> 
   <disableSpeakerAndHeadset>false</disableSpeakerAndHeadset> 
   <pcPort>0</pcPort> 
   <settingsAccess>1</settingsAccess> 
   <garp>0</garp> 
   <voiceVlanAccess>0</voiceVlanAccess> 
   <videoCapability>0</videoCapability> 
   <autoSelectLineEnable>0</autoSelectLineEnable> 
   <webAccess>0</webAccess>
   <sshAccess>0</sshAccess>
   <daysDisplayNotActive>1,2,3,4,5,6,7</daysDisplayNotActive> 
   <displayOnTime>00:00</displayOnTime> 
   <displayOnDuration>00:00</displayOnDuration> 
   <displayIdleTimeout>00:00</displayIdleTimeout> 
   <spanToPCPort>1</spanToPCPort> 
   <loggingDisplay>1</loggingDisplay> 
   <loadServer></loadServer> 
</vendorConfig> 
<userLocale> 
   <name></name> 
   <uid></uid> 
   <langCode>en_US</langCode> 
   <version>1.0.0.0-1</version> 
   <winCharSet>iso-8859-1</winCharSet> 
</userLocale> 
<networkLocale></networkLocale> 
<networkLocaleInfo> 
   <name></name> 
   <uid></uid> 
   <version>1.0.0.0-1</version> 
</networkLocaleInfo>    
<deviceSecurityMode>1</deviceSecurityMode> 
<authenticationURL>http://example.domain.ext/services/authenticate.php</authenticationURL> 
<directoryURL>http://example.domain.ext/services/directory.php</directoryURL> 
<servicesURL>http://example.domain.ext/services/menu.xml</servicesURL> 
<idleURL></idleURL> 
<informationURL></informationURL> 
<messagesURL></messagesURL> 
<proxyServerURL></proxyServerURL> 
<dscpForSCCPPhoneConfig>96</dscpForSCCPPhoneConfig> 
<dscpForSCCPPhoneServices>0</dscpForSCCPPhoneServices> 
<dscpForCm2Dvce>96</dscpForCm2Dvce> 
<transportLayerProtocol>4</transportLayerProtocol> 
<capfAuthMode>0</capfAuthMode> 
<capfList> 
   <capf> 
      <phonePort>3804</phonePort> 
   </capf> 
</capfList> 
<certHash></certHash> 
<encrConfig>false</encrConfig> 
</device>

I have a feeling the problem is with NAT. I have added false under the sipProfile but still nothing. Please help. I am at the end of my rope.

thanks