You can only connect one phone at a time to the MYGIG. This is pretty standard among bluetooth devices. The system allows you "store connections" of 7 different handsets, not connect 7 handsets. In other words it will remember 7 cellphones and connect to them when they come into range. Again only one can be connected at a time, hence the need for priority levels. Thats why of your two phones it only connects to the one set to level 1. To test this, have both on with bluetooth enabled, #1 should connect, then turn #1 off, #2 should connect
Hope this helps
Jay