First thing I would try to find out is: Is it the wiring, or the dial itself? Try removing either the blue or green dial lead. That should cause the phone to lose dial tone permanently. If it does, the wiring is correct.
If removing a blue or green dial lead does NOT cut off the dial tone, it's either the wiring, or the network could be defective. The wiring does look correct from here, but that's *so* difficult to troubleshoot from a picture...
So, if it's the dial, is it pulsing and still not breaking dial tone? If it is pulsing, then the speed is grossly off. If it is not pulsing, it's a physical thing causing that set of contacts not to open and close properly. They could be bent? Or, the part on the dial that intersects the contacts broken or misaligned?