If you go to "services, telephony" and the only option is "backup/restore" your JAVA software is causing a conflict.
To resolve this problem, uninstall your current version of JAVA, and reinstall an older version. Now you should have full access to telephony services.
Hattip to my buddies at Ameritech/SBC/AT&T who helped me figure this out after several days of hair pulling.
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