asterisk users - Jul 2005 - IAX - newbie question

Dear all,

I've been taking my baby-steps toward setting up an Asterisk phone 
system in my office, as also between my home and office (connected by DSL).

I'm have a rough time getting two * boxes talk IAX over a LAN.  I don't 
know what I am doing wrong, but am attaching my iax.conf and 
extensions.conf on both the boxes.  Does anyone see it?

------config files start------
site-0
------

voip:etc/asterisk# more iax.conf
[general]
bindport=4569
bindaddr=192.168.3.60
bandwidth=low
permit=192.168.3.205

;register => user0:secret0@192.168.3.205

[site1]
type=friend
host=192.168.3.205
username=user1
secret=secret1
auth=md5
context=incoming
trunk=yes
qualify=1000
disallow=all
allow=ilbc

voip:/etc/asterisk# more extensions.conf
[general]
static=yes
writeprotect=no

[globals]
; Global Variables
; Internal SIP Phone Numbers
PHONE1=SIP/2001

; Other Site Authentication
SITE1=IAX2/user1:secret1@site1

; MACRO SECTION
[macro-callextension]
exten => s,1,Dial(${ARG1})
exten => s,2,Hangup
exten => s,102,Playtones(busy)
exten => s,103,Wait,30
exten => s,104,Hangup

[internal-site0]
; Internal Extension Numbers
exten => 2001,1,Macro(callextension,${PHONE1})

; MAIN CONTEXTS
[incoming]
; Incoming Calls Come Through Here
include => internal-site0

[internal]
; Internal Phones Dial Through Here
include => internal-site0

; Forward To Other Site
exten => 2XXX,1,Dial(${SITE1}/${EXTEN})
exten => 8500,1,VoiceMailMain()


site-1
------

voip-kntl:~# more /etc/asterisk/iax.conf
[general]
bindport=4569
bindaddr=192.168.3.60
bandwidth=low

[site0]
type=friend
username=user0
secret=secret1
auth=md5
host=192.168.3.60
context=incoming
trunk=yes
qualify=3000
disallow=all
allow=ilbc


voip-kntl:~# more /etc/asterisk/extensions.conf
[general]
static=yes
writeprotect=no

[globals]
; Global Variables
; Internal SIP Phone Numbers
PHONE1=SIP/1001
PHONE2=SIP/1002
PHONE3=SIP/1003
PHONE4=SIP/1004

; Other Site Authentication
SITE1=IAX2/user0:pass0@site0

; MACRO SECTION
[macro-callextension]
exten => s,1,Dial(${ARG1})
exten => s,2,Hangup
exten => s,102,Playtones(busy)
exten => s,103,Wait,30
exten => s,104,Hangup

[internal-site1]
; Internal Extension Numbers
exten => 1001,1,Macro(callextension,${PHONE1})
exten => 1002,1,Macro(callextension,${PHONE2})
exten => 1003,1,Macro(callextension,${PHONE3})
exten => 1004,1,Macro(callextension,${PHONE4})

; MAIN CONTEXTS
[incoming]
; Incoming Calls Come Through Here
include => internal-site1

[internal]
; Internal Phones Dial Through Here
include => internal-site1

; Forward To Other Site
exten => 2XXX,1,Dial(${SITE1}/${EXTEN})
exten => 8500,1,VoiceMailMain()

------config files end------

Sorry about the verbose config files, but hope someone can identify what 
I'm doing wrong.

TIA
tk