"Call has been lost"

I'm experiencing this error message on every call, only a second or two after making the call. I see "01:10" beside it as if the call had lasted for 1 minute 10 seconds. Always the same time. I'm also not able to receive calls - incoming calls were going to some kind of message-management (not normal VZ voicemail), but now it is at least going to VZ.

I just got the phone (Motorola Droid) last week and have been trying to activate it ever since. It seems like it's working (makes and receives calls) but then an hour later it's not working again. 3G data seems to work fine, however. My thought is that this is a Verizon Network problem, but they seem to believe the device itself is to blame. I bought it from overstock (Simplexity), so returning the device is much easier said than done. I'm not sure I believe that it's a device problem, as the device DID make calls, and it's brand new. I'm suspicious of the number porting process.