8700c won't vibrate+ring while in holster in Normal Profile. The setting will work for in holster for any other profile. In addition, when called it rings using the tone in the out of holster setting, instead of vibrating and then ringing using the tone set in the in holster setting.
I've checked to make sure that vibrate works in and out of the holster with other profiles. There are no exceptions to the profile set either.
Here's how it's set up for Normal Profile for Phone:
Out of Holster: Tone
Tune: imerial
Volume: Low
Number of Beeps: 3
Repeat Notification: LED Flashing
In Holster: Vibrate+Tone
Tune: Cingular Tune
Volume: Low
Number of Beeps: 3
Repeat Notification: LED Flashing
Do Not Disturb: No