I gather that the Vonage device still flashes when you plug it into the wall and stops flashing, and works correctly, when you unplug it. Is that correct?
Are you sure that you're disconnected from outside lines? The fact that it worked for two years certainly is good evidence that you are, but it's not conclusive.
Do you have any idea how the wires are run inside the house? As Mundy indicated, the next step is a good visual inspection of the wiring. Assuming that the answer to my first two questions is "yes", then you definitely have a fault in the house wiring, and tracing it down could be a bear. My house wiring developed a fault after 15 years. I found it by doing a visual inspection and noticing that a phone cable was pulled tightly around the edge of the metal box that it was servicing. Mundy is also correct about the color coding. Assuming you've had Vonage on house line 1, the colors you're interested in are either green and red (old wiring) or blue and blue/white (new wiring).
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