Make sure the Norstar telephone set you are using is not restricted for making calls.
Try putting the Norstar into 'long tone' dialing - you dial F808 before dialing number. Key pad depression now controls length of DTMF sent.
Worst case try pulse dial... set up under line in N*.
On the M1, see if you can set the line port loss to a lower value. I think this is possible but I don't have time to research this just now. The total loop loss from the CO to the Norstar cannot excede 8db. I find this an unlikely place to look, but it is possible that your opt11 is set up with a high impedance port here. You could also adjust your loss package at the Norstar to change this (if you have an ICS) Don't use your butt set as the final test for this. Your butt set has a much different impedance value than a 2500 set. You should be using a 2500 set to check and compare against the Norstar.
Which Norstar KSU are you using and which Rls/DR of software?
Just on a whim .. check in Maint on N* whether the trunk port is disabled. Also check to see if the Trunk port is recognised as Idle.
Just a few thoughts here.
PhM