[*] I can hear my voice?!?

[M Bergen]

Hi all;
Well its getting there!
When I make or receive calls through POTS I can hear my own voice a second
after I talk. It is the same whether I use a soft or hardphone. Using VoIP
is fine, quite good really. With POTS the person on the other end sounds
fine, no echo, and there is no echo for them, just at my end.
I have recompiled zaptel with the following uncommented:
#define CONFIG_ZAPTEL_MMX
#define ECHO_CAN_MARK2
#define AGGRESSIVE_SUPPRESOR
Even played with rxgain and txgain.
The sound is better on both ends, but I can still hear my own voice in the
handset (or headset, depending if I'm using a soft or hardphone).
I am using a modem for the FX0, not sure if that should make a difference or
not.
Hearing your own voice becomes annoying really, really fast. If anyone has
any ideas as to what I should try next (or did wrong) please let me know.
Here is a copy of my zapata.conf:
----------------------------------------
[trunkgroups]
; define any trunk groups

[channels]
usercallerid=yes
hidecallerid=no
callwaiting=no
threewaycalling=yes
transfer=yes
echocanacel=yes
echotraining=yes
echocancelwhenbridged=yes
rxgain=8.0
txgain=1.0
immediate=no
usedistinctiveringdetection=yes
dring1=369,324,144
dring1context=incoming2
; define channels
context=incoming
signalling=fxs_ks
channel => 1
-------------------------------------
Thanks again for your time;
Mark