Trackball works with launch OS. After people complained that the trackball was muting their calls while the phones were in their pockets, this was disabled in the next OS release, as was the ability to mute the ringtone during an incoming call. With the latest OS release, you now have the ability to press the Mute button to mute the call for all ringtones. So take your pick on which version you want.
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With the O2 software pressing the Back button will mute the ring for one ring cycle (kinda the way the trackball worked with the Rogers OS). Pressing the Mute button on top will mute for all ring cycles.