Thanks for your help.When plugging in a phone in L1 port of the splitter, you should get dialtone (given your phone service is still alive) and your DSL modem should work plugged into the L2 port of the splitter.
Once the above works, if you disconnect the line 1 modular plug at the NIB, your phone should go dead. This means your line 1 is now isolated from the telephone company so you can freely distribute Ooma dialtone. Once confirmed your landline dialtone is dead when you plug a phone into L1 port of the splitter, feed Ooma's "phone" port into the L1 port of the splitter and you should get Ooma dialtone in every wall jack in your home.
There is no dial tone on line 1 anymore, so I assume that the port is in process.
If I unplug the line 1 modular jack and leave the line 2 modular jack plugged in at the NIB, the Ooma Telo still works, but my internet does not.
If I keep the line 1 modular jack plugged in and leave the line 2 modular jack plugged in at the NIB, the Ooma Telo still works, but my internet does not.
If I unplug the line 2 modular jack and plug the line 1 modular jack in the line 2 receptacle at the NIB, both the internet and the Ooma Telo work.
For right now, I don't need a splitter because I don't care if the Ooma dialtone is distributed throughout the house (I have a base unit and several cordless handsets).