YES!!
It is working now.
Forget ATT U verse DSL customer service. They were absolutely not able to help me with the 3600HGW 2wiregateway and after a while just hung up. No surprise here.
Here is what has to be done , as I found out myself by trial and error :
1. Put into your browser window the IP address on the bottom of the gateway.( For some reason , it did not work from IE 9, just from Chrome
)
You get to 2 wire home page, click on gateway icon then > services>voice > status> input password(see below)> line. Click on RING. You will get a message configured.(It will still show line inactive, do not let you confuse by that ).
Password: The default password for the gateway is printed on the bottom as 'system password". You must change it immediately. Do it right in the beginning.
2.I removed the *1688 from the Digitmap, but it would not work, neither with checked or unchecked Obi settings, the same problem as before- disconnect after establishing
connection.So I had to leave it there.
Which means that I will have to dial **2*1688xxxxx..... whenever I want to use Localphone, unless somebody has a better idea.
I still have to check international dialling, but the people would kill me at this time of the day...
Thanks to RonR and Stewart for info. Thanks also to Mark from Localphone CS for the *1688 tip.