I figured out what the issue was at this particular setup.
In Admin->Advanced->Ext1 Line enabled is set to "Yes" (this is fine)
Admin->Advanced->Ext2 Line enabled was set to "Yes" This needs to be set to "No"
Admin->Advanced->Ext3 Line enabled was set to "Yes" This needs to be set to "No"
After I did that, now the phone rings when a new call comes in, when the phone is being used.
Jim