Using an FVD I found Foreign Voltage on the OW and IW... How much Voltage would cause my Phone to short... Givin that all I have to test this is an FVD?

The voltage on the phone line is nominally 48 volts DC when on hook (open circuit) and about 6 - 9 volts when off hook (phone in use). Ringing voltages are 90-130 volts at 20Hz AC.

Could you please clarify what you mean by "FVD," "OW" and "IW"?

FVD = Foreign Voltage Detector an AT&T Detector given to me... Gives a 0 to 100 and pings at 100 Not used to Measure, OW = Outside Wire (At the NID), IW= Inside Wire

OK, so this device is detecting an AC voltage on the line, correct? Why are you doing this - is there a problem with your phone? You mention it may have a short - why do you think so?

If you want to investigate the source of this AC voltage I suggest disconnecting the inside wire at the NID and then seeing on which side of the disconnection the AC is present on.

If you have DSL, my test set can hear the Data.
What are you looking for in particular?
Data, subaudible, noise, static. If it it at the D Mark (outside box(OW)) Not much you can do but have them run a test on the line. If Internal, would be easier to find.

The Red/ Green is showing the Voltage. I was/ am replacing the CAT 3 with CAT 5 and my concern/ reason was my phones kept dropping out. HAd Ringmaster for my Fax line and removed it... Phones still clipping out. With this FVD I show 40 on the LED at the insulated wire and 60 at the bare wire. So, do I have a bad CAT 3 Line resting on Power wire or some other sourse inside the walls?

Sounds more like an intermiddent make and break. Is this daisey chained, home run? Isolate a jack directly from the d-mark and if you see immediate improvement, if so, it is inside wiring. If not it is from Telco.