Just because you dont see an icon, doesn't mean its not happening. Tedds droid tool is free and has solved it for people who ask me about that, so....... do whatever you want or you can just complain constantly that that is not the problem.
Mine just got replaced (and upgraded) for free to a Droid 2 because of that issue. Head back to Verizon and tell them you want it replaced as it is not a fixable issue.
Let me know if I can be of more help.
Good luck.
Suzanne
1156 * @param state current state of the phone (see {@link Phone#State})
1157 */
1158 /* package */ void updateProximitySensorMode(Phone.State state) {
1159 if (VDBG) Log.d(LOG_TAG, "updateProximitySensorMode: state = " + state);
1160
1161 if (proximitySensorModeEnabled()) {
1162 synchronized (mProximityWakeLock) {
1163 // turn proximity sensor off and turn screen on immediately if
1164 // we are using a headset, the keyboard is open, or the device
1165 // is being held in a horizontal position.
1166 boolean screenOnImmediately = (isHeadsetPlugged()
1167 || PhoneUtils.isSpeakerOn(this)
1168 || ((mBtHandsfree != null) && mBtHandsfree.isAudioOn())
1169 || mIsHardKeyboardOpen
1170 || mOrientation == AccelerometerListener.ORIENTATION_HORIZONTAL);
1171
|| mOrientation == AccelerometerListener.ORIENTATION_HORIZONTAL
Mine just got replaced (and upgraded) for free to a Droid 2 because of that issue. Head back to Verizon and tell them you want it replaced as it is not a fixable issue.
Let me know if I can be of more help.
Good luck.
Suzanne