Ok, a little update.
I did some more checking and as poplar1 suggested, "to find another way of connecting the back from R in the subset to Green in the receiver, because K was already in use for the ringer". So i added a new punch. and it looks like 'B' was not 100% correct either.
And I found that I still had the switch hook connected to R and B. So I fixed all that too.
Now, it rings, dial tone only in the Central Office position, 'house' side of switch cuts the dial tone as expected. Having trouble dialing out, but, I need to double-check that as well.
Thank you poplar1 for all the info, a great learning experience. And thank you unbeldi for the insight as well. I really appreciate it.
and Brinybay, yes, i agree, these hotel phones are pretty sharp and lots of fun to work on.
I'll keep you posted on the dialing.