The no-hold condition on line 2 sounds like the card is bad, but since you swapped them and the trouble remains, I would check the wiring of the second line. Before you check the station wiring, here's a quick test that you can use to simulate a hold condition: take two metallic tools, such as two screwdrivers, and do the following in this order: short the T&R terminals of the line at the KSU output block. Then, while that short is there, short the A & A1 terminals at the same block. The lamp should light at the phone. Now remove the short on the A & A1 terminals while keeping the short on the T & R. The lamp should change to wink, and the interrupter should begin to operate. This test eliminates any wiring issues outside the KSU, and tests the KTU by itself. If this test results in a good hold condition, then the trouble is in the wiring or the telephone set. is the set wired for 1A2 or is it possible it was once converted to 1A? Do you have another tel set you can use temporarily? Do you have more than one tel set on the system?
As far as the incoming ring not operating the interrupter, we need to know what brand and issue of line cards you are using. (Some cards will respond to metallic ringing (across T&R) and some will only respond to grounded ringing.) That will help us figure out the ringing problem. Until we know that, consider this: Have you grounded the KSU to an earth connection? The easiest way to test if this is the problem is to run a piece of cross-connection wire from the ground screws at the top of the 66 block in the KSU to the center screw of a convenient electrical outlet. Do this and ring into the lines again.
