have you checked the max calls and busy trigger set to weird values on the DN
lets say busy trigger and max calls are both set to 2 then the following might happen which would explain your failure
1 call comes in to an agent, another call comes in and thus flashes in the agenst phone display as a second call on the same line, now if the user tries to hit transfer it will not work because max calls is set to 2 and he/she already has 2 calls active when he/she tries to hit the transfer key. to check if this is the case, set the busy trigger to 1 or increase the max calls param to be 4 or more.
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