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Plug in some headphones and unplug them. Sometimes the switch sticks. If that doesn't work, the switch might be busted.
Ok just tried this. When I plug in the headphones, it shows the headphones with no mic at the bottom in the notification bar...without the headphones in, the little mic mouthpiece shows up with the headphones.
That's what's muting sound on calls.
First I'd take a cotton swab with rubbing alcohol or alcohol wipe and clean in and around the jack.
Then I'd go into the application manager and clear data and cache on all media players (menu > settings > applications > manage applications) including Bluetooth, etc whether you use them or not.
Then reboot. You'll have to reconfigure that stuff, but your call audio should be remedied.
Thanks for the tips though!