Networking problem

Hello,
Here is my setup: DSL runs into my office with 1 CAT5 cable. Orange/White Orange connects to RJ11. I want to put an RJ45 on same wallplate and run ethernet from router to my OnQ panel in another closet. How is this done with the spare pairs?
Router requires Orange/White Orange pair and Green/White Green pair.
At the OnQ panel: Do I cut Cat5 and punch them into the data module then patch into a switch to run the Ethernet to other rooms?

You don't use the extra wires on the cable, run a new cable to the jack.

The panel wiring should be switch ports to the ports on patch panel, then whatever ports you want to run to the rooms need to get run from the panel to the jacks in the rooms using the punchdown blocks.