The light in your pictures that is flashing rapidly is normal when the cpu is running. Try dialling 9 to get an outside line, that by default should work as well as 701 for line 1 , 702 for line 2 etc.
A default will show the wrong date.time on the phone displays as well as no names and the buttons don't do what they should.

No one can tell if you should get a dial tone on the co 1 jack who knows how it was used.I would assume you should but can't tell that from here.

The message you are talking about when callers call in is from your line provider. It is because the calls are not getting into the system.I think your best bet is to get a tech out there it will save time and time is money.