Yes, I saw the same. My phone has been slow and finicky in some ways since the upgrade. I hope the next software update fixes it. What I had to do was play around with it. Hit the home button, go in through phone, then contacts, as against using the contacts button from the home screen. I have two numbers set up this way so I can place International calls using a phone card. I just tried it again and confirmed the bug. Dialing after going in from the Contacts link on the home screen does not work.
PS: Unfortunately, for me there was nothing pleasant about "listening" to iPhone do the dialing. After the first pause, every single number dialed is audible, and there's no way that I know of to turn it off!! But this is still much better than having to write down numbers when I paid a bunch of $$$ for this phone and service! My initial preference was for speed dialing during a call, so you could enter phone numbers, credit card numbers (not too smart to save this on your phone, I guess, but still!), conference numbers and passwords, etc. Go, Apple folks, you can do it!!! 🙂
