Verizon should supply a NID. If there isn't one, have Verizon install one. It also provides surge protection for the telephone line. The usually use the SNI-4600. http://www.afltele.com/resource%20ce...s/sni-4600.pdf
Ask them to install an LPF-200 DSL splitter and a Subscriber Interface Device without any electronics.
There is a good chance that they will do that for nothing.
You cannot and should not do anything unless that demarcation device is present.
I usually use the highest pair as the DSL line when it exits the NID. In your case, I'd connect Line 2 of a standard telco jack to DSL.
In the house a standard phone can be used anywhere.
Although not the best solution, any jack can use the DSL modem. Just purchase an adapter that says Line1, Line2, Line1+Line2. Plug the DSL modem into Line 2.
The best solution is to just bring the DSL pair to the middle of the house and install a wireless router.
If you use structured wiring, then things might be different. Cable telco and video originate from the same box.
It is important to have the "access point" of a wireless system in the middle of the house for best coverage. The "access point" is where the wireless antennae is. The modem is best placed as close to the demarkation point as possible. All rooms (telephone, internet) should terminate at a central location. That's neither here nor there.
It's not even necessary to have dial tone to have DSL. You can get DSL without an active phone line. So yes, DSL can work and phones may not.
If you connect a regular phone to the DSL line, you will hear high pitched noises in the background when the DSL modem is turned on. Turn the modem off, it's a regular phone line.
The ring voltage is about 70 V rms at about 20 Hz. This voltage can break down oxidation of terminals. Off hook is about 50V and on hook is about 5 DC. On hook draws about 10 mA or so from the line. The on hook condition is essentially current regulated.
Get the NID installed! It provides transient protection as well as demarcation.