Working with a few 704i's. One ext is set for call forwarding "Ring Both for all calls". If dialed direct and not picked up then it goes to the VMS as it should. If the call is transfered from reception then it bounces back to reception if not picked up. It should go to the VMS and it did before. I can not place what setting has changed.

Emash, I'm not really up on the Nitsuko-Tie systems but you problem sounds like a timer conflict of some sort. Check all your timers and see if you have a transfer recall or an attendant transfer recall. It sounds as though it may be set at less rings then the phone in question needs to go into voice mail.
A6 or JW can probably shed a lot mor light on this.

You should never Set 1027 to both ring set it to Busy no answer. DOuble check your ring no aswer timer and your transferred recall timer