======================= A Working FIX ========================
I'm sorry it's taken me util almost the end of the giveaway to post this; I had no problems playing the game on Friday, in preparing my review (mainly for the images as I used Gamezebo's review). Apart from an amazing number of posts (most of which I didn't moderate adequately) and which were mainly to do with the 404 and phone problems, but still took up quite bit of my time, I've also been really busy either with family matters, sorting out building issues (looks like we will be seeking legal help as we think the builder has been fraudulent) plus I've been playing the Elder Scrollls Online Beta test.
I've wanted to play as much as possible of this Beta version, because I'm uncertain as to whether I'll be buying the game (The Elder Scrolls is one of my favorite games of all time (together with the ArmA series, Grand Theft Auto series, Fallout series and Just Cause series of games).
Unfortunately Bethesda are asking for approximately £50/$80 to pre order the standard version of the game or £70/$112 for the Deluxe version (which gives you access to a steed, a pet and Imperial armour, plus the ability to craft any armour to imperial armour (I think the only advantage is that it looks cool), plus at least another £10 to £12 a month for subscription. Considering I play a lot of different games all the time (can't concentrate on any one game for extended periods since my acident, I doubt I'd be playing it enough to justify such expense, so this beta testing has given me the oppertunity to play the game excessively from Friday evening till Monday. :)
Anyway, to the point:
To write up the review I played Alawars demo for an hour and found that the phone problem wasn't an issue. (others have also indicated that free versions from MPC will do the same) I hadn't bothered installing the giveaway version until late this evening and found that once installed it played from where I left off when playing the demo.
If you download the demo from Alawar and play that till you are past the phone, the problem should be solved; you will find the profile you set up using the giveaway version will be available when you've installed and booted up the demo. I suggest that you only use the demo to get past the phone stage, then return to the giveaway version. Keep the demo, just in case there are any more phone issues later in the game.
You can download the demo HERE. As some have suggested you can also use the free version from MPC, but I suggest using the Alawar demo version to avoid the pitfalls of MPC games.
That's an interesting observation Dragonlair. I'll have to check it out when I have time. At the moment MPC games are forcing me to install the toolbar or change my browser, so I've not installed an MMPC version in a while.
I tend to avoid the free games now except the odd one from Jenkat games due in part to a large Steam collection (as well as Desura, Gamersgate and other games from various sources such as GOG, Alawar, Game Fly and Big Fish games. I purchased over 900 older (more than 3 years old now) arcade games from the now defunct Reflexive Arcade many of which are now available free from places like MPC and Jenkat (I think it was you Dragonlair who first introduced me to Jenkat) :)