Several Phone Call Issues Since Upgrading My iPhone 5 to iOS8

I have an iPhone 5 and I have upgraded to iOS8. Since I have upgraded, I am having severe issues with telephone calls. I used to be able to make a call, hit the hold button and place the phone in my pocket while walking and talking. I can no longer do this (I almost always use my headphones for calls as I can hear better with them versus not having them in for calls). Now if my phone's hold button is hit or it falls asleep, the call disconnects and the MP3 player/ipod feature begins to play.
I have also had issues with calls simply vanishing seconds after I make them. No error message or anything, just vanishing and the MP3 player/iPod turning on.
I have checked the forums/web and have found nothing on this. Has anyone else had any similar issues/any tips on how to make this stop? It's very frustrating.

Did you already try to reset the phone by holding the sleep and home button for about 10sec, until the Apple logo comes back again?
You will not lose data by resetting. If this does not work, set it up as new device, to rule out a software issue. Looks like the proximity sensor is not working as expected, as the music starts playing instead of the screen switching off while placing the phone next to your ear.

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