Thank you for reply, I will try to clarify:
Phone does NOT go dark on incoming calls, all the functions seem to be in working order. The problem is that once there is an incoming call and I am in process of pulling the phone out of the pouch, the menu buttons are inadvertently getting pressed (simply because screen is "in touch" with the pouch and my fingers while being activated by that incoming call), resulting in phone switching from call receiving screen to anything else.
I already adapted to pull the phone as careful as I can (it's a challenge), without touching the screen, but it works in about 50% cases.
I end up needing to quit SMS sending screen (for instance) before I can accept the call, so if I'm slow doing this, I may even miss that call.

What would ease my life with this phone is if it would be just locked, without touch screen being activated on incoming calls, up until I myself would slide that "Swipe button", thus "activating" the screen and have it "under control". Could it be just my settings are wrong at the moment?

Other comments:
I believe I have the latest firmware , I do update everything when there is a message (Application: Maemo 5, Installed version: 20.2010.36-2.002)

>>...block the proximity with finger
Sorry, what it is and where it is?