I think you have given the proper analysis. In #2, you have 2 completed actions. There is no durative action that is interrupted.
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CoincidenceIn the first example a long action is interrupted by a short action (Past Continuous+ Past Simple). In the second sentence we have two long parallel actions, the verb live is used in the Past Simple Tense as in the sentence, e.g.:In 1939 they lived in France.It seems you've answered your own question, and quite well, I'd say. There's nothing to ad