Joel Spolsky has a good take on what you should be looking for in developers. Google: "The Guerrilla Guide to Interviewing"
Are you looking to hire someone junior who'll 'learn on the job'? Or someone who can hit the ground running? For a junior their enthusiasm is probably the most important, someone senior you'll want to know about their coding knowledge and team-leading ability.
Joel hits on the fact that its ridiculous to expect someone to know every arcane detail of C# - you are more interested to know how enthusiastic they are, and how well they fit in the team. So good questions to gauge that: "How would you spend your time at work if you had nothing to do?", "What technology have you learned on the job, how did you go about learning it?", "How do you stay up to date with coding?", "How would you deal with a problem team member?". You are looking for someone who uses their own initiative to improve their skills. Obviously someone smart could flat out lie.
Do the interviews absolutely have to be done over the phone? Could you email them a technical test, that you review? There's a few standard interview algorithm questions: write the code to calculate factorial, give them a block of code with no indenting / poorly named variables / no comment and ask them to critique it. I think its more realistic doing a test with access to the internet/references - as this is how you work!