Finally figured out Linphone (I think). Turns out the mic on my netbook wasn't working. Used an external mic and Bingo, works great. I now have audio from the netbook to the phone, and from phone to netbook using two external mic/headphone combos. A couple of commands to run to get things working. On the Openmoko, as root run:
alsactl -f voip-handset.state restore
Then start linphone: linphonec
at the linphone prompt type: soundcard use 0
Everything should work now.
That's it for me, going to be now.