Is the mute key flashing? Your problem sounded familiar. I had a customer activate 'Class of Service Down' feature by mistake and then they couldn't make any outgoing calls. They would get 'Access Denied' in the display.
Try pressing 'Trans/PGM 22 + stn number + auth code + Hold/Save' to restore COS for external calls.
I would try from Attendant handset (Station 100 usually, find it by dialling 9 or 0, whichever doesn't seize CO Line) and dial in TRANS / PGM 0 2 2, and enter station range 109-109, then Hold/Save.
Check auth codes in LDK programming PGM 227, Authorization code table, refer index number to the the jack station 109 belongs to (should be jack 10/ Index 10. Check this in Numbering plan). If an authorization code has been entered previously from that station, it will appear in that chart.
If you have a VMIB card installed in your system, press Trans/PGM 64 and listen to the station status. Listen for word "Locked" Locked means COS Down as activated at this station. "Class of Service : x " will play after all other status' are read out. If the Class of Service is not 1, or matching another station, you should change the COS by using PGM 116.
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