Check the following two fields on the line configuration page: Maximum Number of Calls and Busy Trigger. If, for some reason, these are set low, such as 2 and 1 (respectively), the user will be unable to transfer or conference. Change at least the Maximum Number of Calls higher, such as 4. Busy Trigger dictates whether or not call stacking will be active. So, a setting of 1 is fine if that isn't desired.