But does the factory reset actually solve the problem? Do you know this for a fact?
I know this answer won't be what you're lookng for, but there is almost no way to know if it will solve the issue. Each person has their settings set different, they have different apps installed with each of those having different settings. The possible combinations that could affect one device and not the other is in the millions if not billions. Even if someone else has the issue, with their phone being setup differently than yours there's no way to know 100% that their solution will solve your problem.
What atheist suggested is the best option at this point. By doing a reset, you are making sure that no other settings or apps are causing the issue. In effect, the phone will be the same as the day you bought it, except it will have android 2.3.3 instead of 2.2. The steps to make a factory reset as painless as possible are:
1. Make sure your contacts are backed up, either through gmail, Verizon's Backup Assistant, or exporting them to the sd card. I only use gmail as it's the easiest.
2. Backup your sd card. Even though a factory reset doesn't format the sd card, IMHO it's best to do it just in case.
3. Backup your apps. The most common ways are Appbrain or exporting them to the sd card. I use Appbrain again as it's the simplest. Download it, setup an account, sync it. Then after the reset and some troubleshoooting (step 5), download it from the Market, sign in, and resync your apps. Any apps you purchased will be in the Market under your apps after you reactivate the phone, but this app will work for both.
4. Write down any settings you want to use later. This is probably the worst part of doing a reset. But there is not another way unrooted that I know of to do this.
5. After the reset, DO NOT install or update any apps. You can sync to gmail for your contacts, but leave everything else alone. Then see if the dialer still has the issue. If it doesn't, then your problem may stem from a phone setting or an app you had installed. If it does, it maybe time to talk to Verizon level 2 tech support, and possibly look into getting a replacement.
Going back to if it doesn't have the issue after the reset, once you know for sure that the dialer isn't acting up, go back to your old setup slowly, changing only a few settings or syncing a few apps at a time. Then see if it has the issue or not. If it doesn't make a few more changes then check again. Keep doing this until either the problem presents itself again or you are completely back to your old setup. If it does show up, change back any settings and uninstall any apps that you just changed/added, and see if it goes away. That's the easiest way to naildown what the problem is. If you put everything back on right away and the problem comes back, then you'll be where you were before the reset.
Again it can be a pain depending on how much you have changed or added to your phone, but if it solves the problem, it's well worth it. If it doesn't, you have eliminated a troubleshooting step. And Verizon will ask if you have tried this, and if you haven't, they will want you to do it. I have been through this a couple of times, but making sure everything is backed up or written down will make it easier.
Hope this helps and good luck.
