cannot receive calls on any of the extensions(Trixbox 2.8.0.3)

We have a trixbox 2.2 box that has been working fine for the last 3 years. We decided to setup a new box with Trixbox 2.8 to make use of skype4asterisk. We setup the box with exact same settings as the old box. Everything seems to be working except we cannot receive calls on any of the local extensions. When we dial an extension from outside or internally, we just get a busy tone and the call angs up. The extensions show as registered in CLI and we can make outbound calls to outside fine. Anytime we dial an extension, ring group or page group, call hangs up. What could be wrong.in the cli its trying to hit the unavailable vmext and then showing a permission denied and then hangup. We are back to the old box for now, till we can figure this one out.