If you hear noise (continual hiss sort of noise) on the line it smacks of a dodgy filter - confirmed if it disappears shortly after you unplug the router/modem.
The business about only working with the phone off the hook sounds like a classic dodgy joint problem - the extra current flowing when the phone is used apparently has some sort of "healing" effect.
The second one makes it sound like a BT job (through ISP unless you also get voice problems). Best to try a different filter first though.
Answers based on stuff picked up here - not personal experience.
Mark
Post editing due to sausage fingers.
If it wasn't edited apologies for the typos
Edited by kwikbreaks (Wed 18-Oct-06 13:42:14)