Example of why no dial tone: the second storm was just enough to cause
a driver transistor to short and not enough to burn out that
transistor. When that computer is powered on, then it holds phone
line 'off-hook'. Dial tone eventually degrades to loud beeping (phone
off hook) and then into a disconnected line. Turn off the computer
and phone line is released (equivalent to phone places on-hook). This
would explain your intermittent loss of dial tone.

Now for the loss in modem speed. Again, this could be due to
something inside the house. If inside the house, Verizon will charge
to fix it. Better you find that problem right now. As others have
suggested, connect directly to the Verizon network inside their NID.
IOW run a long telephone wire from your computer directly into that
network connection. Do not use any wires inside your house. Now make
that modem connection and obsever modem speed. If you get 40K+ on the
modem, then you know the problem is created by something inside your
house. If you don't get properly modem speed, then you now have
something to show the telco repairman.

If is possible that one of the two surge protectors inside the NID
has failed shorted. This could cause modem speed reduction. A simple
30 second repair for that telco employee - but only if you give him
enough information that he can see the problem immediately. This type
of surge protector failure is not obvious which is why you need
something (ie modem speed when connected directly into NID) to
demonstrate the problem.

After all this, you do want to take a further lesson in effective
protection. Destructive surges rarely enter a building through
thephone lines. As demonstrated here, the telco installs effective
'whole house' protector inside their Network Interface Device (NID).
You need same on other incoming utility lines. Concepts and solutions
discussed previously:
"RJ-11 line protection?" on 31 Dec 2003 in pdx.computing at
http://tinyurl.com/2hl53
"strange problem after power surge/thunderstorm" in comp.dcom.modems
on 31 Mar 2003 at
http://tinyurl.com/2gumt

Unfortunately my suggestions require some work - both physical and
reading. Sorry for the too many solutions.

"Julie" noaddress@nospam wrote in message ...
A hot call box is a box that rings if there's an incoming call when you're
on-line. It's cheaper than getting a second line and requires only call
waiting. Thus the telephone and modem are sharing the same line. But I
don't get a dial tone on either the phone or the modem (and I'm able to get
on-line; at this moment I'm just doing so with a lightning fast 19.2k
connection). It's just that every so often the dial tone goes away
completely, only to return when some unwitting good samaritan happens to
call us. Or when I send my husband 6 miles round trip to the nearest pay
phone...

Julie