Blindtransfer problem

I have setup my features.conf as such that the user has to pres ## to do a blind transfer since many IVR menu’s out there ask you to enter a number followed by the pound sign. But it doesn’t seem to work, here is my features.conf file:

featuredigittimeout = 500 ; Max time (ms) between digits for feature activation.

blindxfer => ## ;Blind transfer
atxfer => ** ;Attended transfer

We are using Polycom IP 501 phones.

I tried the following but it seems this feature is not working in Asterisk:

blindxfer => #2 ;Blind transfer
atxfer => *2 ;Attended transfer

The moment you press the first # it wants to transfer.

Are you using DTMF=info in sip.conf? If so change to rfc2833