asterisk users - Jan 2004 - # transfer with IAX2

Hi all,
I'm having a bit of a problem using the # sign to transfer when using a 
soft IAX2 client.  Has anyone else experienced this problem or know of a 
possible work around / fix of this problem.  The following is a snippet 
from my extensions.conf file.  This is how the file is setup for inbound 
calls.  When I was using IAX1 based client, I had no problem at all. I 
simply would hit the # and I would get a voice prompt to transfer; however 
now when I hit the # I get nothing. The caller hears a tone and the CLI 
says "unable to transfer".

[incoming-callers]
exten => 5000,1,Dial,IAX2/myclient|40|t

Thanks all!
AJ