With a stroke of luck I solved the caller ID issue, no thanks to Ooma customer service. When I was told by another individual here he was having a problem with ATT internet provider lines I decided to Google Caller ID problems and low and behold, there were a number of topics on caller ID problems with ATT’s uverse VOIP phone service. It turns out there is some sort of technology that only some phones can process and apparently Ooma is using the same protocols. It seems to have something to do with the “Incoming Call” message which TVs use to display call information on the screen.
So the cure is using newer Panasonic or ATT phones. I happened to have a Panasonic Dect 6.0 cordless phone for my home and went ahead and plugged it in. Caller ID comes up every time. I want to point out that my brand new Dect 6.0 Vtech, and somewhat recent Dect 6.0 Uniden and corded ATT phones do not work.
Here is a link to the ATT forum discussion I found on the topic. Maybe a tech person can figure out what it is that makes one phone work, but not another. http://forums.att.com/t5/Features-and-How-To/Caller-ID-not-working/td-p/2998859