Caller id using asterisk 1.2

I have an FXS/FXO Sipura unit connected to Asterisk PBX and was working very well under version 1.0.x. When I upgraded to version 1.2, the Caller ID behavior for PSTN incoming calls (inbound leg) is now different. Caller Id is NOT passed from PSTN side to the to outbound leg (could be any other extension) anymore, however, extension number is passed instead.

This is mentioned in the release notes ,however, the solution of using -o flag to restore original behavior is not working either.

How can I restore the original caller id from PSTN line (FXO)?