I'm no electrical engineer, but based on
this info I'd say it will work (but may have issues) so long as the following conditions are met:
- The Cat 3 (telephone wires) have 4 UTPs (Untwisted, Shielded Pairs) of copper wire (this can be circumvented if you are able to re-crimp your Ethernet cables to match the necessary pins with the available copper, so long as you have 2 UTPs).
- There's no telephony equipment running on the wires at the same time (and not connected to a telephone switching station (e.g. Verizon).
- You're using the telephone wires to connect no more than two networked points (e.g. one computer and one router, or one hub and one router).
- Your two networked points are not too far from each-other (anything more than 100 feet and you might experience packet loss).
Disclaimer repeated: I have no formal networking education or experience. Use my advise at your own risk
Anyone else? Paging AsherO.