BLF issues on 1.6.0.x

We are running into some BLF issues on 1.6.0.13 that we did not have with 1.4.x.

The issues is that when we place a call from extension A to B only the blf for B lights up A does not.
ie the callers blf never lights as on line when they make a call unless it is an outbound call. We are using a standard dial command. The call is using a standard dial command. When we tryied using 1.6.0.17 the issue got even worse as the blf lights on the phones would randomly light as busy after a call had rung them. When we move them back to a 1.4.x switch they work. We are testing with Grandstream Phone.

Please any ideas?
Thanks

I have been doing more testing. The captuers show that the server is not sending out the BLF notifies for the callers extenshion. what could cause this. If the caller receives a call the BLF notifies go out for that?