Problems Forwarding Calls

I am using a GrandStream GXW4008 with no problems making or receiving phone calls on all eight extensions. If I use *72 to forward calls, I get a fast busy when I call my DID to test it out. I am running Asterisk 1.2.13. Can someone help me out with this one?

This is what the Asterisk Console says when I try to call the forwarded line:

– Executing Dial(“SIP/IP.address-a7150860”, “SIP/inline109|30|t”) in new stack
– Called inline109
– SIP/inline109-0896ace0 is making progress passing it to SIP/IP.address-a7150860
– Got SIP response 302 “Moved Temporarily” back from IP.address
– Now forwarding SIP/IP.adress-a7150860 to ‘Local/IP.address@inline’ (thanks to SIP/inline109-0896ace0)
Apr 24 10:01:04 NOTICE[25438]: chan_local.c:498 local_alloc: No such extension/context IP.adress@inline creating local channel
Apr 24 10:01:04 NOTICE[25438]: app_dial.c:474 wait_for_answer: Unable to create local channel for call forward to ‘Local/IP.address@inline’ (cause = 0)
== Everyone is busy/congested at this time (1:0/0/1)

Can anyone help?