You can only use g729 in pass-thru mode without paying for the licensing fees. G729 is probably the best codec around. If you plan on having any sort of thriving business based on VoIP, g729 would be the way to go. I don't suggest PCMU or PCMA for production. The ATA will pass a list of supported codecs to the Asterisk server and based on what you have allowed in your h323.conf or sip.conf file, that will be what codec is selected. Your audio quality problems could also be traced to a problem with transcoding between different codecs (i.e alaw -> ulaw problem). I suggest you try one by one, all the codecs available to you and disallow/allow codecs in your configuration until you can find the source of your problem.
Humm..How well is G.729 with Music on Hold ?
I've used G.711 for some time (and now, some iLBC), but of course, this is a home system, and need to pass the "wife test". I would even go G.722 if required :-)
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