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CME 4.x : Group Pickup problem??

Running 12.4(4)XC4 ipvoice on 2811 with four FXO trunk lines - Only 11 total phones (7941,7961,7970). No defined pickup groups, that is, if users hear any phone ringing they press gpickup softkey and can answer the call. It is working as advertised, but the problem is that when a user presses gpickup and grabs the call the first 2 to 3 seconds of user's voice cannot be heard by the caller and then everything is fine. Problem does not occur on transfers to a an ip phone. See below user's 7970 (phoneload7.0.3) config:

ephone 1

no multicast-moh

ephone-template 1

username "afrank" password null

mac-address 0018.194D.5C49

type 7970

button 1:1

ephone-dn 1 dual-line

number 5800

label Anne X5800

name Anne Frank

call-forward busy 6800

call-forward noan 6800 timeout 10

corlist incoming Manager


ephone-template 1

softkeys idle Newcall Cfwdall Redial Dnd

softkeys seized Gpickup Endcall Redial Cfwdall

softkeys alerting Endcall Callback

softkeys connected Confrn Endcall Hold Park Trnsfer

Anyone ever see this??

Thanks in advance.