The other line can't understand me when I talk on my iphone 5.

They say my voice is muffled. The only way they clearly hear me is if I put my mouth directly in front of the bottom of my phone.
Then, I can't hear them. The phone does not catch my voice when I have it up to my ear speaking normally. It's not the way I speak, it's the phone. It also has become very sensitive screen wise. My ear hits the mute button all the time.

Do you have a case on the phone? The mute button issue sounds as if it is due to a malfunction in the proximity sensor, which is what controls the screen going blank when you put the phone to your head. The mic issue might be addressed in this support document. http://support.apple.com/kb/TS1631.
What troubleshooting have you tried?

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