Making a Call (I know, I know...)

I have a brand new HTC Touch Diamond, I don't know if it's CDMA or GSM. I'm on the MTS network (Canada).

So here's my dilemma... when I hit the call button (bottom left), I can start dialing numbers, but even if a number is already in my contacts, my phone says that number is not in my contacts and the only option I have is to save it - it won't let me CALL that number.

This is a huge nuisance... I basically can't call anyone unless I "save" a number every single time I try to call it. Is there any option I can turn off to just be able to hit the call button, dial a number, and hit "talk" or the call button again to make it dial out?

Thanks    

Have you tried pressing the call button again to make the call  ?

Sounds really weird...
anyways, I suggest that you bring your unit where you bought it, and ask them if there's something that they can do about your problem with your phone. Maybe it was a factory defect.