See my post above. It's obvious but may help. Are you using any case/screen protector? If so, it may be worth trying it "naked" to see if it's actually a device issue.
Keep us posted.
No, no screen protectors, plastic strips, nothing (i.e. my iphone is in its birthday suit!). I've reset network settings, factory restored the phone through itunes, dialed *228 opt 1, reset phone, tried dialing via contact list and through direct dialing of the number.
Basically, I have to press the speaker phone icon on/off to get the earpiece to have sound. Otherwise, call connects, but no sound (i.e. no ringing, no nothing).
I've even tried pluggin in the head phone jack in and out, blew on it to clear debris, etc.
I went to Verizon store, and they will replace the phone when they get more shipment.
I really feel, though, that this likely a software issue with ios 5. Hopefully and update forthcoming in case others have the same problem.