Pilot:
I believe the LEDs have more to do with whether you have Service Providers configured, than whether the phone port is physically alive.
If you're dialing **9 222 222 222 and getting no connection, the first thing to check is whether the Obitalk voice service is disabled.
Doing the factory reset ordinarily should turn that voice service back on. Dial ***, 8, 1.
You can check the system status using the built-in user interface. Use your browser to open the IP address of the Obi. (Login is admin/admin) Scroll down to see the status of the Obitalk Service. If the service is enabled and you're still getting that recording, then something in your network/router is possibly blocking you from calling out.
While you're checking status, click on Phone Port Status. Each port should say "On hook," 0ma, 56v(11.6v),45v, ----.