Hi there,
connecting a DTMF device to an active phone line can be tricky. For starters, you've got arond 50 volts DC on the line when it's idle (phone is 'on hook') then you've got around 80 to 110 volts AC when the phone is ringing (interrupted) and around 5 to 12 volts when the phone is picked up 'off hook' to make or answer a call.
Many DTMF decoder chips (eg: the MC 145436P by Motorola) uses only 5 volts DC to power it up. So your device must have at least one low voltage DC supply independent of the phone line for it to work safely (no house fires from bodgy circuitry!) and reliably.
You can try connecting the DTMF chip via a 600 ohm/600 ohm transformer specially designed for phone line interfacing. One side of this transformer (known as the 'primary winding') will conect via 2 capacitors (around 0.22uf at 400 volts DC each - usually mains grade power filter caps set in epoxy, often called 'greencaps' or by the more modern named 'MKT' version).
The other side of the transformer winding (known as the secondary winding) an be connected to the input of the DTMF chip via a smaller capacitor (a 0.1uF/100 volt will do) and your circuit ground connection. It is also advisable to position 2 'back to back' diodes across the secondary, to combat the possibility of high voltage ring signals from damaging your DTMF decoder chip. There are a number of similar interface circuits around the Net, so have a good look. Epanorama is a good place to begin your search.
Austin Hellier
Downunder