We tracked down the problem to the following 2 issues:
1. From NCH Technical support:
Could you please check for a Quality Windows Audio Video Experience service in the windows services to see if it is running or existing.
To see this please click start -> control panel -> administrative tools -> services
If the Quality Windows Audio Video Experience (QWAVE) service is not listed in the services directory, please run the following command from the windows command prompt to install the service.
Servermanagercmd.exe –install qwave
This will take about 3-4 minutes to install and then the machine will need a reboot afterwards.
After the reboot, check that the service is set to run at startup.
Once this is done the calls should stop disconnecting on you as soon as the call is answered.
2. We were running Windows Server 2008 Web Edition and the above role/service is not available. We had to upgrade to Windows Server 2008 Standard to be able to use the above service.
In summary, Dial Dictate is not compatible with Windows Server 2008 Web Edition and you may need to follow the above steps depending on what roles you have installed in Windows Server 2008 Standard. Dial Dictate does run natively on Windows Server 2003 Web Edition.
I hope this information may be of help to some other Dial Dictate users.
Jeanie B.