You sure do not need a transformer for basic analog telephone service. Make things easy on yourself. Unhook all the jacks in the house. On the demarc outside hook up red to red and green to green. Go inside to the first block and hook the red and green to your jack. Check to see if everything works OK. If it does then proceed to the next jack. It's not exactly jet rocket stuff, just 2 wires.
Just remember, if you look at a phone jack the red and green wires are the 2 center conductors and are used for line 1. The yellow/black wires go on each side of the red/green and are used for line 2.
In the days of Princess phones people seldom used a second line so telephone guys used the yellow black for the power to light the dial.
Now, here is another thing to remember. Someone mentioned previously they had some old ATT/Bell touch tone phones around because they were so reliable. They are. They are the best corded phones made and were all made at Western Electric (another Bell System Company at the time) in Indianapolis Indiana. However, if you hook one of these up and cannot break dial tone just connnect the red to green and green to red at the jack. These babies were polarity sensitive.
Now, if your color code is blue, orange, green, brown, slate.
then you have 5 more wires with blue/white, orange/white, green/white etc....
Use solid Blue for the Red (or Tip) and Blue/White for the Green (or ring). Then orange and orange/white could be used for line 2 or in place of yellow and black .
Geez,, can't believe I got that involved.
Good Luck.
Tom