Given that I was looking for a working Localphone.com setup for N900 and it required a few bits of hit and trial to get it working, I thought I would post the instructions here in the hope that google will index it so that anyone looking for the setup will be pointed to this thread.

For those of you who don't know what localphone.com is, it is a VOIP provider in UK, well known for its good quality service calls and rates much lower than those offered on skypeout for many countries. Usually I just use their local numbers to make calls but since I was going to be out of the country and had free wifi in my hotel, I decided to configure my n900 to work with localphone.

So the step by step instructions are:

1. Under settings, go to VOIP and IM accounts
2. Select New to create a new account
3. In the address field, enter YourSipId@localphone.com (e.g. 2347654@localphone.com). Make sure you don't use sip:2347654 or sip.2347654
4. Under password, enter your SIP password. Both SIP ID and password are available under Localphone voip settings in your account. You may need to enable VOIP in order to use it though.
5. Check the enabled box
6. Under advanced settings, enter your SIP Id as user name(as in step 3) but minus the @localphone.com
7. Select Use for telephone numbers so that it gives you the option to call your contacts using SIP
8. Transport is Auto
9. Outbound proxy is proxy.localphone.com
10. Port is 5060
11. Leave all other options on default and click Done
12. Before you can make any call, you would need to go online (this is the same way you go online on skype or gtalk, under availability)
13. Select any contact and click on SIP Audio option OR in the dial pad, instead of call type being Cellular, select the SIP account

That's it, you should be up and running on Localphone.com

How do you find the call quality of this service?

Excellent...but as mentioned, I have so far been using it with the local access numbers they provide (which ofcourse have a VOIP backend, but is hidden from the user) and I have never had any issues with that. Tried SIP on N900 for a brief 1 minute call and had no issues whatsoever, but that was tried on my home broadband connection.

Presumably you purchase credit to use the service? If so how long does that credit last before it expires?

That's the good thing about this service...the credit doesn't expire for one year from the date of last activity and there are no connection charges etc. I would say I am quite satisfied with it so far. Much better than the Betamax services I have tried in the past

I can now confirm that this setup works extremely well over both 3g and wifi. Have been using it extensively on my holkidays and so far no one has been able tell that I have been using VOIP to call them

Dose this work in Oman or can say gulf

well i did all the settings but for some reason it wont sign in??
i really wanted to use the localphone.com voip service... o well