All you need is a DSL connection (wont work with dialup or cable from what I know) and this thing you can get at Radio Shack called the Fone Flasher. Basically you just plug it into a lamp and when a call comes it makes the lamp flash on and off. I got one for $1.50 at the clearance section.
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DSL Filter==Phones
NID -<
DSL Modem
an effective way to cause a DSL dropout in this setup is to either, unplug and replug a phone line in the house about 5 times, or, using WIRED phone, use pulse dialing and just dial random numbers, just be careful to not dial 911. the best way is to dial your own number with the area code, and you will always get an error.
Personal Rant(ignore this): s are a pain.