I have previously reported this problem to tech support at UFED, and received the reply that they are working on the inability of the Physical Analyzer to parse the DMG image from that OS version…so the bottom line is that it still does not parse a 3.1.3 image to produce call lists and sms, though it does recover images and audio…
crazyrudy,
I'm sorry that this is the answer you got, perhaps there have been a misunderstanding. Since version 2.0 UFED Physical analyzer supports parsing DMG images of all iOS 3 and iOS 4 devices.
As I said in my previous post, you should also be able to easily open an image that was acquired in other methods using the "Open Advanced" option, and in "Select Device" choose "Apple iPhone (Physical)".
If this does not work for you for any reason, please PM me with the trace output (visible using View->Trace Window) and I will be more than happy to find a solution for the problem.