Hmmm, the GS used to have two modes for 3-way: bellcore (flash hook like you tried), and one where before dialing the other party (after putting first on hold), you dial *23. Like this:
3 way calling between HT, A and B:-
1. HT calls A
2. HT talks to A
3. HT presses FLASH or hook/flash and gets a new dialtone
4. A is on Hold
5. HT dials *23 and number for B
6. HT talks to B
7. HT presses FLASH or hook/flash to initiate the 3 way calling
The mode is selectable in the config pages and defaulted (at least on my 286) to non-bellcore mode. If this is also true for 502 (I can't confirm this), they provisioning got messed up. You can test this by trying the above and if it works open a ticket to have them fix it. If this isn't the case, sorry

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