I'm going to try that. In the meantime here's a video of the odd behavior.



Note in the vid I did hook up the green and white wires to connect the handset only when off the hook, to possibly prevent the ringer voltage hitting the handset, and wired it up like it "should".

With that in mind, I'll try your recommendation to seemingly get around the two-wire coil and use that cap in the network via a jumper.

Good idea, brb..