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Source: http://www.apple.com/iphone/tips/

Making calls

Buttons at the bottom of the Phone screen give you quick access to your favorites, recent calls, your contacts, and a numeric keypad for dialing manually.
Call someone in your contacts list: Tap Contacts, choose a contact, then tap a phone number.
Call a favorite: Tap Favorites, then choose a contact.
Return a recent call: Tap Recents, then tap a name or number in the list.
Dial a number: Tap Keypad, enter the number, then tap Call.
Jump to favorites from anywhere: Double-click the Home button.
Bring up the last number you dialed: Tap Keypad, then tap Call. Tap Call again to dial the number.

Receiving Calls

When you receive a call, tap Answer. If iPhone is locked, drag the slider. If you're using the stereo headset, click the mic button to answer a call.
Silence a call: Press the Sleep/Wake or either volume button. You can still answer the call after silencing it, until it goes to voicemail.
Decline a call: Do one of the following to send a call directly to voicemail.
* Press the Sleep/Wake button twice quickly.
* Press and hold the mic button on the headset for about two seconds. Two low beeps confirm that the call was declined.
* Tap Decline (if iPhone is awake when a call comes in).
Block calls and maintain Wi-Fi access to the Internet: In Settings, turn on Airplane Mode, then tap Wi-Fi and turn it on.

While On a Call

When you're on a call, the screen shows call options.
Mute your line: Tap Mute. You can still hear the caller, but the caller can't hear you.
Use the keypad to enter information: Tap Keypad.
Use the speakerphone or a Bluetooth device: Tap Speaker. The Button is labeled "Audio Source" when a Bluetooth device is available, which lets you select the Bluetooth device, iPhone, or Speaker Phone.
See contact information: Tap Contacts.
Put a call on hold: Tap Hold. Neither party can hear the other.
Make another call: Tap Add Call.
Use other applications during a call: Press the Home button, then tap an application icon.
End a call: Tap End Call. If you're using the stereo headset, you can click the mic button instead.

Second Calls

During a call, you can make or receive another call. If you receive a second call, iPhone beeps and shows the caller's information and a list of options.
Respond to a second call: To ignore the call and send it to voicemail, tap Ignore.
To hold the first call and answer the new one, tap Hold Call + Answer.
To end the first call and answer the new one, tap End Call + Answer.
Make a second call: Tap Add Call. The first call is put on hold.
Switch between calls: Tap Swap. The active call is put on hold.
Create a conference call: Tap Merge Calls.

Conference Calls

You can talk to more than one person at a time, and merge up to five calls, depending on your carrier.

Create a conference call:

1. Make a call.
2. Tap Add Call and make another call. The first call is put on hold.
3. Tap Merge Calls. The calls are merged onto one line and everyone can hear each other.
4. steps two and three to add up to five calls.
Drop one call: Tap Conference and tap the button next to a call. Then tap End Call.
Talk privately with a call: Tap Conference, then tap Private next to a call. Tap Merge Calls to resume to conference.
Add an incoming call: Tap Hold Call + Answer, then tap Merge Calls.
iPhone always has a second line available in addition to the conference call.

Emergency Calls

If iPhone is locked with a passcode, you may still be able to make an emergency call.
Make an emergency call when iPhone is locked: Tap Emergency Call, then dial the number using the keypad.
IMPORTANT: You should not rely on wireless devices for essential communications, such as medical emergencies. Use of any cellular phone to call emergency services may not work in all locations. Emergency numbers and services vary by region, and sometimes an emergency call cannot be placed due to network availability or environmental interference. Some cellular networks may not accept an emergency call from iPhone if it doesn't have a SIM, if you locked your SIM, or if you haven't activated your iPhone.

Setting Up Voicemail
The first time you tap Voicemail, iPhone prompts you to create a voicemail password and record your voicemail greeting.
Change your greeting:
1. Tap Voicemail, tap Greeting, then tap Custom.
2. Tap Record when you're ready to start.
3. When you finish, tap Stop. To review, tap Play.
To rerecord, repeat steps 2 and 3.
4. Tap Save.
Use your carrier's default greeting: Tap Voicemail, tap Greeting, then tap Default.
Set an alert sound for new voicemail: In Settings, choose Sounds and turn New Voicemail on. The alert sounds once for each new voicemail. If the Ring/Silent switch is off, iPhone won't sound alerts.
Change the voicemail password: In Settings, choose Phone > Change Voicemail Password.

Checking Voicemail

When you tap Phone, iPhone shows the number of missed calls and unheard voicemail messages.
Tap Voicemail to see a list of your messages.
Listen to a message: Tap the message. (If you've already heard the message, tap the message again to replay it.) Use and to pause and resume playback.
Once you listen to a message, it's saved until your carrier automatically erases it.
Check voicemail from another phone: Dial your own number or your carrier's remote access number.

Deleting Messages
Select a message, then tap Delete. Deleted visual voicemail messages are saved on iPhone until your carrier permanently erases them.
Listen to a deleted message: Tap Deleted Messages (at the end of the list), then tap the message.
Undelete a message: Tap Deleted Messages (at the end of the list), then tap the message and tap Undelete.

Getting Contact Information
Visual voicemail saves the date and time of the call, the length of the message, and any available contact information.
See a caller's contact information: Tap the blue button next to a message.
You can use the information to email or text the caller, or update contact info.

Contacts

From a contact's Info screen, a quick tap lets you make a phone call, create a new email message, find the location of their address, and more. See "Contacts" under "More Applications."

Ring/Silent Switch and Vibrate Modes
A switch on the side of iPhone makes it easy to turn the ringer on or off.
Turn the ringer on or off: Flip the switch on the side of iPhone.
NOTE: Clock alarms still sound even if you set the Ring/Silent switch to silent.
Set iPhone to vibrate: In Settings, choose Sounds. Separate controls let you set vibrate for both ring mode and silent mode.

Setting Ringtones
You can set the default ringtone for calls and Clock alarms and timers. You can also assign individual ringtones to contacts so you know who's calling.
Set the default ringtone: In Settings, choose Sounds > Ringtone, then choose a ringtone.
Assign a ringtone to a contact: From Phone, tap Contacts and choose a contact. Then tap Ringtone and choose a ringtone.

Creating Ringtones
You can create ringtones in iTunes using songs purchased from the iTunes Store. Your iTunes Store account will be charged for each ringtone.
Create a ringtone:
1. In iTunes on your computer, choose iTunes > Preferences and make sure Ringtones is selected (in the General pane).
2. Make sure you are connected to the Internet.
3. To identify the purchases you can use to create ringtones, choose View > View Options and then select Ringtone. (If a message appears, click Check Songs.)
To identify eligible purchases later, choose iTunes > Check for Updates.
4. Select the song you want to use and then choose Store > Create Ringtone.
5. Adjust the highlighted area at the bottom of the iTunes window to choose up to 30 seconds of the song.
6. To make the ringtone fade in or out, select either or both "fade" checkboxes.
7. To change the delay before the ringtone plays again, choose an interval from the Looping pop-up menu.
8. To listen to the ringtone, click Preview.
9. Click Buy.
IMPORTANT: After you click Buy, you can change the ringtone's name and other information, but you can't select a different portion of the song.
You can sync ringtones created with iTunes with any iPhone you own, and play them on up to five authorized computers. After you sync your iPhone, you can assign the ringtone to one or more contacts.
You can also create custom ringtones in Garage Band. See Garage Band Help for more information.