All the laws I have found so far in regards to hands free only talk about while talking/hearing and texting.  It doesn't talk about handsfree dialing. 

My 2.1 leaked v3 I have on my droid eris has two apps. Voice dialing and voice search. Vocie dialing does not work on my phone at all since I did the update, but this could be because it is a leaked version.  Voice search does a pretty decent job, pending on what you have it search for.  You can change the settings with in the menu-settings-search-search items section.

I think it works nicely but it doesn't support bluetooth and you still have to click on screen to confirm.  There is no stock android app that supports bluetooth voice dialing.  There are work arounds and the moto devour I think has support for bluetooth voice dialing using a non standard application(It doesn't even provide it on their newer phones as far as I have heard).  I don't even understand why the app isn't available seperately on the market as of yet. Terrible.